Upland, Pa.-based Crozer-Chester Medical Center officially closed May 2, marking the final step in Prospect Medical Holdings’ plan to shut down the Crozer Health system.
Here are five things to know:
1. The closure of Crozer-Chester Medical Center follows the April 26 shutdown of Taylor Hospital in Ridley Park, Pa. Combined, the closures have led to the layoffs of 2,651 employees.
2. Despite the closure of its hospitals, Crozer Health’s ASCs and imaging centers in Brinton Lake, Broomall, Haverford and Media, Pa., will remain open. The Crozer Endoscopy Center and the Broomall Radiation Oncology Center, along with its other outpatient services, are slated to close.
3. The hospital closures come after months of court proceedings, stakeholder negotiations and unsuccessful attempts to sell key facilities. The decision to shut down occurred just three days after Crozer Health CEO Tony Esposito stepped down. Mr. Esposito had been with the organization for more than five years and was appointed CEO in July 2022.
4. In a letter to state officials, Los Angeles-based Prospect Medical Holdings said it had been working with the Pennsylvania Attorney General’s office to sell both hospitals. However, as of April 18, all potential buyers — including the University of Pennsylvania Health System, which had offered $5 million to extend negotiations — had withdrawn interest.
5. The Pennsylvania Attorney General’s office criticized the closure, pointing to the role of Leonard Green & Partners, the private equity owners of Prospect, in the system’s downfall.
“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,” a spokesperson said in a statement shared with Becker’s.
Becker’s has reached out to Crozer and will update this article if more information becomes available.
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