Prospect Medical Bankruptcy Update

Last Updated: March 24, 2025

Prospect Medical Bankruptcy Update

The Delaware County Health Department is committed to keeping residents informed about the recent bankruptcy filing by Prospect Medical Holdings and its potential impact on the County’s healthcare landscape.

Updates will include the latest news, guidance on accessing healthcare resources, and assistance available to help residents navigate this challenging time.

Crozer Health

On April 1, 2025, representatives from Prospect Medical Holdings informed a North Texas bankruptcy court judge that a resolution had not yet been reached and that all parties would continue to work toward a long-term solution. Representatives for Prospect Medical Holdings requested that the judge adjourn the April 1, 2025, hearing until Thursday,  April 3, 2025. As of April 1, 2025, no buyer has been approved, no sale has been agreed upon, and no formal proposal has been presented to the court. Negotiations and court proceedings are ongoing.

The county team is working around the clock with state officials, regional healthcare systems, and other partners to source solutions for our community and support the local employees of Prospect Medical/Crozer Health System.

Current Status of Crozer Health Facilities

• On March 6, 2025, Prospect Medical Holdings informed the bankruptcy judge that it would file a motion to close Delaware County’s Crozer-Chester Medical Center and Taylor Hospital unless additional emergency negotiations result in a short-term solution. This closure notice is currently on hold. Even if a closure notice is filed, there will still then be a period of time after that for the shutdown to proceed. The proposed order includes both those hospitals as well as Community Campus 301 W. 15th St, Chester, PA 19013, Crozer Medical Plaza at Brinton Lake 300 Evergreen Drive, Glen Mills, PA 19342, Crozer Health at Broomall 30 Lawrence Road, Broomall, PA 19008, Media Medical Plaza 200 E. State Street, Media, PA 19063, and Surgery Center at Haverford 2010 West Chester Pike MOB Wellness Center II, Suite 212.
• Information on the court filings is available at https://cases.omniagentsolutions.com/?clientId=3725.
• The filings in bankruptcy court are separate from state requirements for closure of a health system. Prospect has not yet submitted a formal closure notice or a closure plan to the state for the Crozer Health System.
• We know this is very stressful for patients and their families. The state will be overseeing this process and the county will monitor and share information as it becomes available.
• A health facility closure plan required by the state must include how the facility will safely continue care for all patients (in patient and outpatient). For current Crozer patients, it is Prospect/Crozer’s responsibility to communicate with you and facilitate the transfer of your care. Please watch for communications from your current healthcare provider in this regard. An important resource in this regard for patients who are insured is their health insurance provider. Please reach out to your insurance customer care contact for support regarding your individual options.
• As approved in court in Prospect’s bankruptcy case, a temporary manager/receiver (FTI Consulting Inc) is currently operating Crozer Health. FTI Consulting Inc. is a national advisory firm with a division that provides crisis management for health-care operators.

Prospect Medical Holdings Bankruptcy Background

• Prospect Medical Holdings, the parent company of Crozer Health, filed for Chapter 11 bankruptcy on January 11, 2025, in the United States Bankruptcy Court in Northern Texas.
• Crozer Health operates Crozer Chester Medical Center in Chester and Taylor Hospital in Ridley Park.
• This development places Delaware County’s most vulnerable—patients, families, and frontline healthcare workers—in a precarious position. It reflects years of mismanagement, financial exploitation, and disregard for public health and community well-being.

State Oversight and County Response

• Hospitals in Pennsylvania are regulated by the Commonwealth of Pennsylvania. The Pennsylvania Attorney General and Governor’s Office are working to transition Crozer Health into responsible nonprofit ownership.
• Delaware County Council and the County Executive are collaborating with:
• Congresswoman Mary Gay Scanlon
• State Representatives and Senators
• The Governor’s Office and Attorney General’s Office
• The Pennsylvania Department of Health
• Regional health system partners

These partnerships are focused on contingency planning to address potential impacts on healthcare services and ensure continuity of care for Delaware County residents.

What Residents Need to Know

• Stay updated by checking this page regularly for new information.
• For immediate medical emergencies, dial 9-1-1.
• Consider using urgent care facilities for non-emergency needs to reduce the burden on Emergency Medical Services (EMS). For guidance, visit the Emergency Room and Urgent Care Guide.
• DelGo Community Transit operates the Medical Assistance Transportation Program (MATP) and Shared Ride Transportation Program for Seniors. More information available here.

The Delaware County Health Department Wellness Line

The Delaware County Health Department Wellness Line is available to assist residents during this challenging time. Residents can call (484) 276-2100 for:

• Updates on the Prospect Medical Holdings bankruptcy.
• Guidance on navigating local healthcare resources, including urgent care and mental health services.
• Support with general health concerns and connecting to needed services.

Delaware County remains committed to supporting residents, providing clear updates, and ensuring access to critical healthcare resources throughout this period.

Emergency Preparedness and Municipal Resources

Delaware County has developed a Toolkit for Navigating Municipal Impacts of Prospect Bankruptcy to assist local governments in responding to potential disruptions in healthcare services. This toolkit provides guidance on emergency declarations, funding opportunities, EMS coordination, and municipal planning in the event of hospital closures. In collaboration with state and regional partners, Delaware County remains committed to ensuring continuity of care and supporting municipalities through this evolving situation.

Toolkit for Navigating Municipal Impacts of Prospect Bankruptcy.

For all County of Delaware Press Releases https://delcopa.gov/publicrelations/releases.html

Prospect Medical Holdings, Inc. is the owner of Crozer Health, which employs thousands of hard-working Delaware County residents in the medical field and related positions. Impacted residents can to reach out to the county’s PA CareerLink® (https://pacareerlinkdelco.org/) offices for re-employment support.