APRIL 22, 2025 — BOOM: SHUT DOWN IMPACTING 2,651 EMPLOYEES
Crozer Health will cease operations and lay off more than 2,600 employees between April 25, 2025, and May 2, 2025, according to a closure notice from parent company Prospect Medical Holdings.
According to a company statement…
“Today, Prospect Medical Holdings made the extremely difficult decision to begin winding down operations across our Crozer Health facilities. The ambulatory surgery and imaging centers at Brinton Lake, Broomall, Haverford, and Media will remain open.
"PMH recognizes the impact this action will have on patients as well as team members. We’ve worked tirelessly with the Pennsylvania Attorney General and other parties to do everything possible to prevent this outcome. Unfortunately, we were unable to reach a viable alternative. At this time, the focus at Crozer Health remains on seamlessly transitioning patients to other health facilities so that they can continue to receive the critical, uninterrupted care they require, and to support Crozer Health team members as they seek to identify other employment opportunities.”
"Today, Prospect Medical Holdings will file closure notices and begin the process of winding down Crozer Health and all of its operations. As Court appointed receiver, we are disappointed an alternative resolution and sale could not be reached. Any questions regarding the closure—including the transitioning of patients and future of Crozer Health’s affected employees—should be directed to Prospect Medical Holdings.
"We are thankful to all those who came forward and offered potential solutions to sustain operations, as well as the patients who put their trust in Crozer Health and the dedicated employees who have continued to show up at work leading up to and throughout this process to provide the care and comfort patients need.”
FTI Consulting, which had served as the court-appointed receiver for Crozer, noted, “We are disappointed an alternative resolution and sale could not be reached. The ‘FTI plan’ was one of recovery and exploration of a possible sale, not closure.”
From the WARN notice…
"As a result of the unforeseen circumstances described above, Prospect is forced to close operations and permanently lay off the Pennsylvania employees listed below: .
The letter said that 2,651 workers from across eight facilities would be laid off:
1,908 employees at the Crozer-Chester Medical Center, located at 1 Medical Center Drive in Upland
45 employees at the Crozer-Chester Medical Center Behavioral Health Unit, located at 1 Medical Center Drive in Upland
88 employees at the Crozer Health Corporate Offices, located at 1 Medical Center Drive in Upland
126 employees at the Crozer-Springfield Hospital, located at 190 W. Sproul Road in Springfield
53 employees at the Crozer Springfield Hospital Offices, located at 190 W. Sproul Road in Springfield
351 employees at the Crozer-Taylor Hospital, located at 175 E. Chester Pike in Ridley Park
34 employees at the Crozer-West 15th Street Offices, located at 301 W. 15th Street in Chester
46 employees at the Crozer-West 15th Street Offices BHU, located at 301 W. 15th Street in Chester
MARCH 16, 2023 — RESTRUCTURING WITH 215 LAYOFFS
The company has announced that it was restructuring to focus on removing duplication in administrative oversight and discontinuing underutilized services. The restructuring involves laying off 215 people, or 4% of its total workforce to stem financial losses from extraordinarily high labor, drug, and supply costs that have not been matched by higher payments from insurance companies.
The services to be closed within 60 days are the sleep center at Taylor Hospital, cardiac rehabilitation and wound care in Springfield, and outpatient drug and alcohol treatment at Crozer-Chester Medical Center.
Crozer CEO Anthony Esposito noted, “We made the difficult decision to restructure our operations in order to ensure that resources are properly allocated to meet our patients’ and our communities’ most pressing health care needs, while at the same time allowing us to stem the financial losses.
SEPTEMBER 29, 2022 — CLOSURE WITH 334 LAYOFFS
The company has announced the closure of Delaware County Memorial Hospital located in Drexel Hill, Pennsylvania, on November 28, 2022. The company is planning to transition the facility to a behavioral health facility offering detoxification services on an inpatient basis starting in the Spring of 2023.
The closure will impact 334 employees. A lawsuit to block the closure has been filed.
The financially troubled company attributes the closure to a drop in admissions, decreased state and federal funding, cuts in reimbursements, and an increasing number of patients with no insurance or Medicaid.
FEBRUARY 28, 2022 — Original post…
Springfield, Pennsylvania-based Crozer Health, a full-spectrum regional medical health provider owned by Los Angeles, California-based Prospect Medical Holdings, has announced major layoffs, in preparation for a sale possibly to Wilmington, Delaware-based Christiana Care Health System, pending regulatory approvals.
Approximately 300 individuals were targeted, including executives and administrators as well as support staff.
Crozer Health presents a unique situation as it is dealing with declining admissions, poor government reimbursement rates, and large lease payments after Prospect sold the real estate to Medical Properties Trust as part of a $1.55 billion sale-leaseback deal.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
