Saturday, November 01, 2025
View Larger +
Crozel now closed PHOTO: Crozel
Crozer Health in Pennsylvania was a sister hospital group to Rhode Island’s CharterCARE. Both were owned by the bankrupt Prospect Medical Holdings and each was a second-tier hospital group that had suffered through budget cuts, layoffs, and a lack of investments.
Crozer closed, and more than 3,000 workers are out of a job. It happened fast.
GET THE LATEST BREAKING NEWS HERE — SIGN UP FOR GOLOCAL FREE DAILY EBLAST
As GoLocal reported on Friday, Prospect has filed to close the CharterCARE hospitals — Roger Williams and Fatima hospitals. The other option, proposed by Prospect, is to turn the hospitals over to the state of Rhode Island.
The clock is on the proverbial field for the two Rhode Island hospitals.
Here is How Fast Crozer Closed
On Monday, April 21, 2025, Prospect filed a bankruptcy notice announcing it was closing Delaware County’s Crozer-Chester Medical Center and Taylor Hospital.
A bankruptcy hearing on the closure plans was scheduled for 2:30 p.m., the next day, Tuesday.
“Prospect, a for-profit company, acquired Crozer in 2016 in a deal valued at $300 million, then leveraged Delaware County’s largest health-care system for investors’ financial gain. Two years later, Prospect borrowed $1.12 billion to pay off debt and issued a $457 million dividend to its owners, Leonard Green & Partners, as well as to individual owners, Prospect executives Sam Lee and David Topper,” wrote the Philadelphia Inquirer.
Despite efforts by state officials to keep the hospitals open, the bankruptcy judge granted the closure petition.
By May 2 — just 10 days after Prospect filed the petition to close the two hospitals — both of the Crozer Health hospitals were closed, and more than 3,000 healthcare employees were out of work.
CBS reported, “This is the only hospital in this community. There’s a lot of violence that does go on within the City of Chester, and where are these people supposed to go?” Renee Carter, a patient care technician at Crozer-Chester, said. “The elderly people. I have been coming to this hospital since I was a kid. I had both of my children here. It’s just sad. There was a big car accident yesterday, and there was nowhere to take these people. Everything about this situation is sad. Prospect should be ashamed for doing this to such a good community, good workers.”
Immediately, the emergency room waiting time at surrounding hospitals exploded.
View Larger +
Chief Judge Stacey Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas. PHOTO: Federal Court
Clock on in Rhode Island
For months, Rhode Island officials have followed a failed strategy to sell $150 million in bonds through a state finance agency to a Georgia-based non-profit with no experience running a hospital. S&P rated the bond BB- with a negative outlook. The bonds have not been sold, and the failed strategy over the past eight months may have done more to ensure the bankruptcy court showdown.
On Thursday evening, Prospect filed a 346-page petition before Chief Judge Stacey Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas to close the CharterCARE hospitals.
On Friday, Rhode Island Attorney General and other officials reacted to the news.
On Tuesday, Judge Jernigan will hear Prospect’s petition.
The fate of the hospitals and about 2,000 healthcare workers in Rhode Island could be determined on Tuesday.
Related Articles
CharterCARE Computers Back Online After Ransomware Attack
Georgia-Based Centurion Foundation Submits Application to Buy CharterCare From Prospect Medical
Company Buying CharterCare Has Just One Full-Time Employee
In RI and CT, Owner of Roger Williams and Fatima Hospitals Facing Growing Legal Battles
UNAP Oppose Prospect’s Sale of CharterCARE, Centurion Fires Back
Fate of Roger Williams and Fatima Hospitals Tied to Sale of $140 Million in Bonds
Reaction to the Move to Close Roger Williams and Fatima Hospitals
RI Healthcare Monopoly — Brown and Lifespan Announce Deal and CharterCARE’s Fate Is Unknown
UPDATED: RIDOH Issues Immediate Compliance Order Against Roger Williams & Fatima
United Nurses & Allied Professionals and Fatima Hospital Reach Agreement on New Contract
Fatima Hospital Now Offering Mako Robotic Technology for Joint Replacement Surgery
UNAP: Workers at Our Lady of Fatima, Roger Williams & Prospect Vote for Union to Issue Strike Notice
UNAP Votes to Authorize Strike Notice at Fatima Hospital — Will Picket Hospital on Wednesday
CharterCare to be Sold – Deal Includes Roger Williams and Fatima Hospitals
Neronha Secures $80M Guarantee From Owners of Fatima and Roger Williams After Demanding $150M
Attorney General Neronha Issues Blistering Response to Prospect, Owners of CharterCARE
Neronha’s Consultant Gives Approval for Conversion of CharterCare’s Ownership
Attorney General, RIDOH Delay Review of Prospect CharterCARE Hospital Conversion
McKee Announces Transition COVID-19 Group Co-Chaired by CharterCARE Physician & Mayor Polisena
CharterCARE Owners Announce Closure of Roger Williams and Fatima if AG’s Demand for $150M Holds
Parent Company of RI’s CharterCARE Is Selling More Hospitals in Philly
PA Attorney General Moves to Take Over CharterCARE’s Sister Company
New Deal Impacts CharterCARE’s Future
CharterCARE Bonds Aren’t Selling, McKee Is Pouring in Millions to Try and Save Deal
With Bonds Not Selling, Neronha Changes Course and Releases Tens of Millions for CharterCare Deal
Stalled Bailout of Bankrupt CharterCARE Hospitals Gets New Financing Scheme
McKee Looking to Scoop Opioid Settlement Money to Fund CharterCARE Bailout
Bonds to Finance CharterCare Deal Did Not Sell Last Week, Hospital Expert Issues Warning
Judge Approves Closure of CharterCARE’s Sister Hospitals in PA – 2,600 Expected to Be Laid Off
Neronha Pushes Sale of CharterCARE Forward, Centurion and Prospect Approve of AG’s Changes
CharterCARE’s Parent Company Files for Bankruptcy – Fate of Roger Williams & Fatima in Question
Judge Approves Sale of CharterCARE; Buyer Seeks to Raise $138 Million to Finance Deal
RI Financing CharterCARE $400M With Debt Service, S&P Rates Bonds “Negative Outlook”
BREAKING: Chaos Hits CharterCare Sale, Petition Filed to Close Roger Williams and Fatima
Enjoy this post? Share it with others.