Prospect Medical Holdings’ plan to close Crozer-Chester Medical Center and Taylor Hospital shows a lack of care for our community, its healthcare workers, and its patients. This reckless decision will strip vital healthcare services for thousands of people, further limiting access and deepening health disparities. It is yet another example of why private equity has no place in healthcare.
From the start, The Foundation for Delaware County has been committed to fighting for the future of the health system. We have led legal efforts against Prospect for repeatedly breaking its promises, and continue to push for accountability. Unfortunately, the Foundation has never had the ability—or the financing—to save the system. Our role has been to hold Prospect accountable while continuing to invest in vital programs such as maternal health services, housing support, and nonprofit funding. Since its founding, the Foundation has provided over $14 million in grants to local nonprofits, supported 8,500 new and expecting mothers annually, and played a key role in launching the Delaware County Health Department and other essential initiatives. We are committed to providing over $1M in grant funds to Delaware County nonprofits in April, rent obligations over several years on our four properties, payroll for our 80 employees, and subsidies for our maternal health and housing programs.
While we would have preferred to direct resources toward a smooth transition to a nonprofit health system, Prospect Medical Holdings’ mismanagement has left the Foundation – and the entire county – bearing the financial consequences of their failures. Prospect has dumped a $30 million liability on the Foundation, forcing us to cover lease obligations for their Springfield property over the next 4.5 years. While we have the funds to meet this obligation, our resources are largely dedicated to our mission-driven initiatives. Even if we diverted additional funds, it would not be nearly enough to sustain an entire health system and would ultimately threaten the existence of the Foundation, putting an end to the vital programs and services we provide to the community.
Without significant state support to attract a regional health system willing to take on this challenge, any financial contribution from the Foundation would be a short-term fix—leaving us with no hospital, no Foundation, and Prospect as the only winner. Instead, we remain focused on protecting our mission and ensuring our resources continue to support the nonprofits and families who rely on us.
The reality is clear: private equity has no place in healthcare. The Foundation for Delaware County will continue to advocate for a sustainable, responsible solution that prioritizes the well-being of our community over corporate greed.
