While company says hospitals will remain open, government promises contingency plan
Delaware County Council, joined by members of the Delaware County delegation and the broader Delaware County Team, held a press conference to address the abrupt bankruptcy announcement by Prospect Medical Holdings, the parent company of Crozer Health.
Officials acknowledged that while Crozer Chester Medical Center and Taylor Hospital remain fully operational for now, with no closures or reductions in services currently announced, the situation remains precarious. Prospect Medical Holdings’ track record of financial mismanagement and service reductions has left the community on edge, and County leaders are preparing for the possibility that additional closures may be forthcoming. Although Prospect has committed to continuing hospital operations, paying staff, and maintaining vendor payments during the Chapter 11 bankruptcy process, officials emphasized that the company's past actions warrant skepticism and close scrutiny.
“This bankruptcy places our community’s most vulnerable—patients, families, and frontline healthcare workers—in an increasingly precarious position,” said Delaware County Council Chair Dr. Monica Taylor. “It is the unfortunate culmination of years of mismanagement, financial exploitation, and an alarming disregard for public health and the well-being of our residents. However, this also presents an opportunity to take Crozer back from Prospect and transfer it into responsible hands to stabilize the system for patients and workers.”
Immediate Impact on Hospital Operations
Officials emphasized that Crozer’s hospitals, EMS operations, and mental health services are open and will remain open during the bankruptcy process. Employees will continue to be paid, and Prospect is cooperating with the Pennsylvania Attorney General and Governor Josh Shapiro’s office to divest Crozer Health and transfer it to a responsible nonprofit healthcare organization.
“County leadership is working closely with state and local partners to ensure that there is no interruption to emergency and behavioral health services,” said Dr. Taylor. “Our newly formed Delaware County Health Department, led by Director Lora Werner, is here to support residents with questions and provide updates during this uncertain time.”
“Our goal is to support our county residents with the information they need to navigate this challenging time,” said Director Werner. "The Health Department is here to provide updates and to help residents navigate available healthcare resources in the area."
Residents may call the Delaware County Health Department Wellness Line at (484) 276-2100 for updates regarding the bankruptcy as they become available and for assistance navigating available healthcare resources in the area.
