Pennsylvania attorney general's office sues Prospect Medical Holdings, alleging "neglect and mismanagement"
The Pennsylvania Office of Attorney General is going after Prospect Medical Holdings, the owner of the Crozer-Chester medical system, by alleging "neglect and mismanagement" in a lawsuit filed in the Delaware County Court of Common Pleas.
Peggy Malone isn't shy about her work, a nurse for 37 years at Crozer-Chester Medical Center and president of the nurses union.
"Oh, I have the best career in the world," Malone said. "I could not be anything but a nurse. I have loved every minute. There's not a day that I have gone to work that I have not wanted to go to work."
But in announcing a lawsuit against Crozer Health's parent company, Prospect Medical Holdings, the Pennsylvania attorney general said that there are signs Crozer-Chester could see suspended services and could be in danger of closing, following the leads of Delaware County Memorial and Springfield hospitals.
"Our legal action shows how corporate greed has severely harmed Delaware County's largest health care provider, its patients, its staff and the community," Attorney General Michelle Henry said.
In its filing, the AG said Prospect Medical Holdings violated its 2016 purchase agreement by closing Delaware County Memorial and Springfield hospitals. The AG alleges Prospect Medical Holdings mismanaged and diverted more than $450 million to private investors.
"That money lined the pockets of the shareholders when it should have been reinvested in the health care system to keep its doors open," Henry said.
In a statement, Prospect Medical Holdings called the filing of the lawsuit "hasty" and "completely unnecessary."
"We have been working diligently over the past several months to transfer Crozer Health to a not-for-profit owner... In addition, we have been working toward an agreement with the Governor's Office for the state to provide some additional stabilization on funding."
The statement continued in part, "It is important to stress that Crozer Health's facilities and services remain open, with no changes to services, and its outstanding clinical teams are continuing to provide safe, quality care to those Delaware County residents who depend upon the health system for their health care."
Among other things, the lawsuit seeks payment of costs to continue full operations at Crozer-Chester and Taylor Hospital in Ridley Park.
CBS News Philadelphia has covered for years the closings of the hospitals and a downsizing in services.
Katie Denney, a paramedic in the Crozer Health System, said, "You know Upper Darby, for example, they don't have Delaware County anymore," Denney said. "So we have to rely on Lankenau. We have to rely on Fitz to take those patients. The volume of waiting patients in the ERs is incredibly insane."
For Malone, the legal action is seen as a much-needed lifeline to keep her hospital going.
"That's what we've been waiting for and begging for years," she said. "That this is something that is so near and dear to our hearts."
Henry said they expect to be in front of a judge "very soon" as they ask the courts for a receiver to be appointed to oversee the health system until a new buyer can be found.