The for-profit owner of Crozer Health, Prospect Medical Holdings, has filed for Chapter 11 bankruptcy, writes Kenny Cooper for WHYY.
The filing Saturday allows Prospect Medical to restructure as it seeks buyers for its hospital systems in Connecticut, Rhode Island, and Pennsylvania, including the Crozer Health system.
“It does not mean that Prospect Holdings is going out of business,” the California-based company stated in a release. “Rather, Prospect Holdings is utilizing the Chapter 11 process to facilitate its organizational realignment as expeditiously as possible.”
Crozer Health, will remain open during the bankruptcy process.
Prospect CEO Von Crockett highlighted the challenges Prospect has faced in an email sent to Crozer employees. Those challenges include the continuing impact of the COVID-19 pandemic, higher costs from inflation, a cyberattack on Prospect’s hospital systems, and health plan denials.
Prospect acquired the four-hospital Crozer Health system in 2016, which now only has two functioning hospitals—Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park.
The Pennsylvania Office of Attorney General had filed a suit against Prospect Medical in October, seeking to have the state take over the Crozer Health system, citing mismanagement and corporate looting.
Read more about the impact of Prospect Medical Holding’s bankruptcy filing at WHYY.
