Pennsylvania health system lays off staff as CEO exits

Springfield, Pa.-based Crozer Health is cutting jobs and scaling back services as a possible sale of the four-hospital system looms, according to The Philadelphia Inquirer

The health system, owned by Los Angeles-based Prospect Medical Holdings, recently laid off hundreds of employees, including administrative staff and senior leaders, former employees who lost their jobs told the Inquirer. An industry source told Becker's Hospital Review that more than 200 workers were let go. 

Crozer Health did not respond to Becker's request for comment on the extent of the job cuts, and the health system has not filed a layoff notice with state regulators. 

The layoffs happened as Crozer Health replaced its top leader. The health system recently appointed Kevin Spiegel, senior vice president of strategy and revenue development at Prospect Medical Holdings, CEO. He's replacing Peter Adamo, who served as CEO of Crozer Health for two years. Mr. Adamo's last day at Crozer Health is Feb. 11, according to the Philadelphia Business Journal.

Crozer Health is cutting services as well. Families of patients in the hospice unit at the system's hospital in Ridley Park, Pa., were told Feb. 4 that the unit was closing and they would have to relocate family members within a week, according to TV station WPVI

In a statement to WPVI, Crozer Health attributed the closure to declining admissions and challenges tied to the national nursing shortage. 

In January, the health system announced it was closing the inpatient obstetric unit at its hospital in Drexel Hill, Pa., and consolidating services with those at its hospital in Upland, Pa. 

The staff and service changes are occurring as speculation about a sale mounts, according to the Inquirer

Prospect Medical Holdings said in October that it was conducting a standard strategic review of Crozer Health to explore potential partnerships and "new opportunities." The company said the review may not result in the sale of Crozer Health. 

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