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Chester health officials warn Prospect Medical bankruptcy could put Crozer hospitals at risk
Summary
City Health Commissioner Dr. Kristen Motley told the Chester City Council that Prospect Medical Holdings filed for bankruptcy, and the Pennsylvania attorney general is seeking receivership to avoid closures at Taylor Hospital and Crozer Chester Medical Center; city leaders urged residents to track developments and plan for care alternatives.
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Dr. Kristen Motley, health commissioner for the City of Chester, told the City Council on Jan. 22 that Prospect Medical Holdings filed for bankruptcy last week, a development that is already affecting Taylor Hospital and Crozer Chester Medical Center.
"Prospect Medical Holdings . . . filed for bankruptcy last week, which is impacting Taylor Hospital and Crozer Trusted Medical Center. They are actually in court today. The PA attorney general is pushing for the court to require that the hospitals go under receivership as opposed to closing," Motley said, and added that “they do have a team that is ready to take over the operations of the hospital.”
The report came during the council's staff reports. Motley said she has asked to be added to ongoing stakeholder calls so the city can be represented and to assemble resources to help Chester residents find care and transportation options if local services are disrupted.
Mayor Ruth echoed the concern, saying the situation “is not to be taken lightly” and that Crozer has long been a primary source of care and employment for Chester residents. "It is our hospitals, the place we go, the place we've gone. We've had our babies. We've had our operations," the mayor said, urging residents to monitor the situation closely.
Motley told the council she will participate in stakeholder meetings and compile information about alternatives for residents, including urgent care options in the area. She said a stakeholder group has been meeting and that the Pennsylvania attorney general had asked the court to require receivership rather than allowing a shutdown.
Council members discussed the potential local impacts on access to primary and emergency care, the hospital's role as a major local employer, and the possibility that university-affiliated hospital systems could become partners in any transition. Motley said the city is preparing materials for residents to explain options and transportation resources to appointments outside the city if needed.
The council did not take formal action on the item but asked staff to keep the council informed and to continue outreach to stakeholders and residents.
For now, Motley said, she is monitoring court proceedings and participating in the stakeholder effort to preserve local services and minimize disruption.

