US-based private healthcare company Prospect Medical Holdings is beginning to move services from its two hospitals in Pennsylvania to nearby healthcare providers ahead of the hospitals’ full closure.
The Wall Street Journal reported that the company had been openly planning to close these facilities for several months.
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William Curtin, an attorney representing Prospect, told the bankruptcy court that the company will begin transitioning certain hospital services, including obstetrics and gynaecology, from Crozer-Chester Medical Center and Taylor Hospital to other local providers.
The moves come as Prospect continues efforts to finalise a months-long sale negotiation with an undisclosed buyer.
Prospect has secured $40m from state and local governments over recent months, along with support from the local non-profit Foundation for Delaware County.
Despite this, further requests for additional funding have been rejected, according to Curtin.
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By GlobalDataCurtin said that Prospect intends to generate further funds over the coming weeks by selling smaller Crozer assets valued at under $5m.
Through this, the company aims to keep sale negotiations moving forward and avoid a full shutdown of the hospital.
The severe financial troubles facing Prospect’s Crozer Health reflect similar challenges at Steward Health Care System, another national hospital chain that filed for bankruptcy last year after repeatedly warning of hospital closures without state and local support.
In response, the state of Massachusetts provided $40m to keep six Steward hospitals operating while new ownership deals were negotiated, but two of those facilities were eventually closed.
Prospect took over Crozer in 2016 and closed two of its four hospitals in 2022.
In a recent letter to the judge, county officials warned that if the remaining facilities are closed, Delaware County and its roughly 500,000 residents would lose two of its last four hospitals.
In January this year, Prospect Medical Holdings filed for bankruptcy after struggling with rising debts and operating costs.
