PA Attorney General Moves to Take Over CharterCARE’s Sister Company
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PA Attorney General Moves to Take Over CharterCARE’s Sister Company
Both presently are owned by Prospect Medical Holdings.
The Philadelphia Inquirer is reporting Tuesday, “Pennsylvania’s Attorney General has taken the unprecedented move of petitioning a Delaware County court to give the state control of the financially beleaguered Crozer Health, filings in the Court of Common Pleas show.”
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The newspaper reports:
The petition says that Crozer’s owner, Prospect Medical Holdings Inc., notified state officials that they intend to close key service lines after Nov. 20. “If permitted to go forward, a suspension of key service lines will clearly cause immediate and irreparable harm, as Crozer-Chester Medical Center would likely not survive,” the AG’s motion said.
Crozer did not immediately respond to a request for comment.
The legal action follows years of turmoil for the county’s largest health-care provider that has been under for-profit ownership since 2016, including several years under the control of a Los Angeles private equity firm. Two of Crozer’s four hospitals have closed, and the system has endured numerous rounds of layoffs. State hospital inspectors get called to Crozer facilities for safety problems and complaints almost twice as often as to other area hospitals.
In Rhode Island, the sale by Prospect of CharterCARE and related healthcare entities has been under state review for two years. The Rhode Island Attorney General's office has given conditional approval for the sale to Centurion, but the deal has not been finalized.