Prospect Medical Nears Shutdown, Putting Thousands at Risk

Prospect Medical Holdings, a major healthcare operator that filed for bankruptcy in January, is preparing to shut down its Pennsylvania hospitals—Crozer-Chester Medical Center and Taylor Hospital—after months of uncertainty. Services like obstetrics and gynecology are already being shifted to other providers. The company, once known for acquiring struggling hospitals, now faces financial collapse due to overwhelming debt. While facilities in Rhode Island are being sold, no deal has been reached for the Pennsylvania locations, despite months of negotiations with a potential buyer.

source: https://www.dailymail.co.uk/yourmoney/article-14610447/bankrupt-healthcare-giant-181-hospitals-clinics-begins-closure-process-devastate-locals.html?ito=email_share_article-top

Doctors and local officials warn that closure of these hospitals would severely impact thousands of residents and employees who depend on the network. Prospect recently raised $6 million from a potential buyer and received $40 million in public aid, but further funding requests were denied. A bankruptcy judge has called for state officials and local nonprofits to meet with Prospect in search of a solution. Meanwhile, the company hopes to avoid abrupt closure by selling off minor assets.

Prospect’s financial crisis follows similar collapses of other hospital systems like Steward Health Care, fueling concern over the impact of private equity ownership in healthcare. These shutdowns raise alarm about reduced access to essential services, especially for vulnerable populations.

Daily Mail Reporter. (2025, April 17). Bankrupt healthcare giant with 181 hospitals and clinics begins closure process that will 'devastate' locals. Daily Mail. https://www.dailymail.co.uk/yourmoney/article-14610447/bankrupt-healthcare-giant-181-hospitals-clinics-begins-closure-process-devastate-locals.html