2,651 jobs terminated in one of the largest layoffs in Pa. in recent years
By DANIEL URIE
pennlive.com
HARRISBURG (TNS) — In what is one of the largest layoffs in recent years in the Keystone State, a hospital system is closing multiple locations in Pennsylvania and more than 2,600 people will be laid off. At least one county, two cities and a township have issued emergency declarations.
Prospect Medical Holdings, Prospect Crozer Home Health and Hospice, Prospect Crozer, Prospect CCMC and Prospect Health Access Network filed a Worker Adjustment and Retraining Notification with the Pennsylvania Department of Labor & Industry informing the state of eight closings in Delaware and Chester counties, and that 2,651 people will be laid off.
The layoffs will take place at the following locations:
■ 1,908 employees at the Crozer-Chester Medical Center, at 1 Medical Center Drive, Upland, Delaware County
■ 45 employees at the Crozer-Chester Medical Center Behavioral Health Unit at 1 Medical Center Drive, Upland, Delaware County
■ 88 employees at the Crozer Health Corporate Offices, located 1 Medical Center Drive, Upland, Delaware County
■ 126 employees at the Crozer-Springfield Hospital at 190 W. Sproul Road, Springfield Township, Delaware County
■ 53 employees at the Crozer Springfield Hospital Offices, at 190 W. Sproul Road, Springfield Township, Delaware County
■ 351 employees at the Crozer-Taylor Hospital at 175 E. Chester Pike, Ridley Park, Delaware County.
■ 34 employees at the Crozer-West 15th Street Offices, located at 301 W. 15th St., Chester, Delaware County
■ 46 employees at the Crozer-West 15th Street Offices BHU, located at 301 W. 15th St., Building B, Ground Floor, Chester, Delaware County The WARN Act is federal legislation that offers protection to workers, their families, and communities by requiring employers to provide notice 60 days in advance of a covered-business closing and covered-business mass layoff. There are some exceptions to the requirement. The WARN notice was dated April 21.
Prospect said it was unable to provide the required 60 days notice to the state due to unforeseen circumstances. The company is laying off employees between Friday and May 2.
Prospect filed for Chapter 11 bankruptcy back in January in the United States Bankruptcy Court for the Northern District of Texas. Leading up to and since the chapter 11 filing, Prospect said it was working in coordination with the Pennsylvania Attorney General’s Office “on a pathway to transition Prospect’s Pennsylvania facilities, in an effort to ensure continuity of patient care and protect Prospect’s employees”.
Initially a buyer agreed to purchase the operations but, later pulled out of the deal.
Prospect then reached an agreement with the state to appoint a receiver to take over the strategic decision-making and finances of Prospect for the Pennsylvania facilities from Feb. 5 to March 5. The agreement was later extended to April 18.
On April 9, Prospect said it received an offer from the University of Pennsylvania Health System, which intended to provide $5 million in funding, the majority of which would be a donation to Prospect, to allow for a further extension of time to reach agreement on a purchase of the Pennsylvania facilities. On April 17, Prospect said it was informed that donation would no longer be available to allow for the extension.
With no buyer and no additional funding, Prospect said it was forced to close operations and permanently lay off all employees at its facilities in Chester and Delaware counties.
Delaware County issued an emergency declaration.
“The emergency declaration enables the County to expedite staffing, procurement, and emergency medical coordination, and is initially in effect for seven days. The declaration also allows officials to track and potentially recoup costs related to the closures. If extended by Delaware County Council, the declaration may remain in effect for a longer duration,” the county said on its website.
At least three municipalities in Delaware County have also declared emergency declarations.
The city of Chester said that with the closure of the Crozer Emergency Room, transport time to the nearest appropriate medical facility will increase.
Chester Mayor Stefan Roots has signed an emergency declaration for the city in response to the Prospect’s closing announcement.
“City Council and I are devastated by this crisis, and we are taking every possible step to address the negative impact this closure will have on the City of Chester and its residents,” Roots said. “We are actively working with the receiver and his team to identify viable solutions that will ensure our residents continue to have access to prompt emergency medical services which will be impacted by Prospect’s irresponsible actions.”
Brookhaven Mayor Denise Leslie also issued an emergency declaration related to Crozer’s imminent closure.
And Ridley Township has also issued a declaration of disaster emergency.
“A significant public health crisis has emerged due to the reduction of Emergency Medical Services (EMS) and the closure of two nearby hospitals, a direct consequence of the overall closure of Crozer Health. The diminished EMS capacity means longer response times for emergencies, while the loss of hospital facilities limits available treatment options and jeopardizes timely access to critical medical care for residents,” the declaration said.
A bankruptcy judge in Dallas approved the closures, according to the Philadelphia Inquirer.