Pa. attorney general files lawsuit against owner of Crozer Health for alleged mismanagement

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.

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