Pennsylvania’s attorney general has filed a lawsuit against Prospect Medical Holdings, officials announced Tuesday.
The suit alleges that the company mismanaged, corporately looted, and neglected the Delaware County-based Crozer Health System for years.
It went on to allege that these circumstances led to a hospital closing and cuts to services at other facilities.
“They guaranteed no hospital would close, that there would be no substantial cuts to services for at least a decade,” noted Attorney General Michelle Henry.
Doctors within the healthcare system told Action News that times have been tough.
“Chronic understaffing, a critical shortage of necessary supplies,” explained Dr. Monica Taylor.
The lawsuit also alleges that Prospect Medical had broken the initial purchase agreement, which was approved by a court back in 2016.
“Prospect signed an agreement, they are on record telling the community they fully intended to maintain Crozer as a robust network. ‘We’re an expansion company, not a contraction company,'” Henry explained.