A Pennsylvania lawmaker’s proposal to create a $200 million fund to support the acquisition and reopening of shuttered hospitals has been removed from the state budget bill, the Delaware County Daily Times reported July 23.
State Rep. Craig Williams proposed the Hospital Acquisition Assistance Fund in June, following Los Angeles-based Prospect Medical Holdings’ decision to close Upland, Pa.-based Crozer Health and lay off more than 2,600 employees.
Mr. Williams said in June that House lawmakers passed a bill that would give the attorney general the authority to review future private equity acquisitions, “but that will not reopen Crozer or restore emergency care access for the families in my district.”
“This proposal is about reopening the doors and helping the community recover,” Mr. Williams said.
Mr. Williams said that his amendment was taken out of the budget bill “with no discussion or debate,” but is hopeful his proposal will return in the fall, according to the report.
“Although we have now placed a great deal of time pressure on the hospital transactions by putting the final budget off until the fall, I am still hopeful that we can find some monetary tool to facilitate re-opening our hospitals, particularly Crozer,” he said, according to the report.
Mr. Williams said his proposal would not require new taxes or new revenue, instead relying on previous budget appropriations that had not been spent. Some lawmakers, however, expressed concern that the funds would come from the Medical Assistance managed care program.
