Taylor Hospital in Ridley Park, Pa., closed April 26 after a bankruptcy court approved Prospect Medical Holdings’ plan to wind down operations at Upland, Pa.-based Crozer Health, CBS Philadelphia reported April 25.
The decision follows a monthslong battle to save the health system, during which nearly $50 million was invested to maintain payroll, according to the report. A $5 million deal between Prospect and Philadelphia-based Penn Medicine aimed at keeping Crozer operational ultimately collapsed.
Crozer’s 300-bed Crozer-Chester Medical Center will close May 2, with its emergency department shutting down April 30. More than 2,600 employees are expected to be laid off as the health system shutters.
Los Angeles-based Prospect, which acquired Crozer in 2016, said it worked “tirelessly” with the state to avoid a shutdown, according to a statement shared with Becker’s.
The Pennsylvania Attorney General’s Office accused Prospect’s private equity owner, Leonard Green & Partners, of prioritizing profits over community health. “We worked tirelessly to avoid this outcome,” the attorney general’s office said in a statement. “Unfortunately, the damage inflicted by Leonard Green & Partners was too much to overcome. We will continue to work through the bankruptcy process to pursue the Commonwealth’s financial claims to the greatest extent possible in order to hold Prospect accountable for actions that caused this closure.”
Prospect plans to auction off Crozer’s assets next week, according to CBS Philadelphia.
Becker’s has reached out to Crozer for comment and will update this story if more information becomes available.
