Delaware County lawmakers urge Pennsylvania Attorney General to reclaim million from Prospect and take additional measures.

Delaware County lawmakers are urging Pennsylvania Attorney General Dave Sunday to petition U.S. Bankruptcy Judge Stacey Jernigan to reclaim million that was allocated to sustain Crozer Health facilities until recently. This request follows the decision by Prospect Medical Holdings to close operations, which has raised significant concerns among state legislators regarding the continuity of care in the region.

The delegation is specifically pressing for an order that would require Prospect, a for-profit healthcare company based in California, to fund standby ambulance services at the Crozer-Chester Medical Center’s emergency department. These ambulances would be essential for transporting patients to the nearest hospitals once Crozer fully ceases operations. According to the lawmakers, this service needs to be guaranteed for 16 weeks after the closure, as opposed to the 7 to 10 days proposed by Prospect.

Data highlighted in a recent communication from the lawmakers demonstrates the urgency of their request. In the year following the closure of Delaware County Memorial Hospital in November 2022, 155 individuals required ambulance transport from its emergency department to alternative medical facilities. The lawmakers argue that the substantial patient volume at Crozer-Chester necessitates that Prospect be liable for the costs associated with these emergency transport services.

Half of the million in question is reported to have originated from Delaware County, allocated for behavioral health services and complemented by contributions from the state’s Medicaid program. Legal representatives for Prospect have noted in court that million owed to Crozer comprises funds from both the state and the county. Nevertheless, Delaware County has alleged that Prospect failed to submit appropriate billing for behavioral health crisis services, which has delayed payments.

Of Pennsylvania’s contribution, .3 million represents an advance on Medicaid payments intended for hospitals serving a large number of low-income patients; ordinarily, these payments are distributed at the end of the state’s fiscal year in June. Additionally, funds from the Foundation for Delaware County, an independent nonprofit that supports local health initiatives, make up the remainder of the million sought by lawmakers. Much of the foundation’s funding stems from the sale of the former Crozer Keystone Health System to Prospect in 2016.

The potential return of these foundation funds remains uncertain, as it is unclear whether the judge would be amenable to such a request, particularly given the previous pressures exerted by the court on the foundation. Moreover, the lawmakers are advocating for a criminal investigation into the operations of Prospect’s current and former owners, citing a pattern of disinvestment and neglect within the Crozer Health system over the past nine years.

This multifaceted situation continues to unfold, highlighting the complexity of healthcare management and the implications of corporate ownership within the sector. As stakeholders navigate these challenging waters, the focus remains on ensuring that residents receive the necessary medical care during this transitional period.

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