October 29, 2024 - Media, PA

ADVISORY - AG Henry Sues Prospect Medical Holdings over Breach of Contract, Mismanagement of Crozer Health System Resulting in Closures, Disruptions of Services

Attorney General Michelle Henry announced the filing of a lawsuit against Prospect Medical Holdings, Inc., regarding years of the company's mismanagement and neglect of Delaware County-based Crozer Health System, which has resulted in closures of facilities and shattered a network of care for hundreds of thousands of Pennsylvanians.

The lawsuit alleges Prospect Medical has broken an Asset Purchase Agreement, approved by a court in 2016, by cutting services and closing facilities, while diverting funds to private shareholders and investors, rather than supporting the healthcare network.

The Office of Attorney General filed a civil complaint Tuesday to redress Prospect Medical's management and require the company to fund operating costs until a new owner is in place.

The lawsuit is also seeking a preliminary injunction to preserve existing service lines, the appointment of a receiver to manage the Crozer Health System for the immediate future to avoid additional closures and cuts to services.

Speakers Include:
AG Michelle Henry
PA Senator Tim Kearney
PA Representative Leanne Krueger
Delaware County Commissioner Dr. Monica Taylor

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