Harrisburg, PA – Governor Josh Shapiro is calling on the General Assembly to pass the Health System Protection Act — newly-introduced legislation that would rein in exploitative private equity practices and give the Pennsylvania Attorney General the authority to block bad deals that threaten access to care. This effort reflects the Governor’s call in his budget address to reform the way private equity has infected Pennsylvania’s health care system — gutting hospitals, laying off workers, and cutting off communities from essential care.
The legislation, introduced by Senator Tim Kearney and Representative Lisa Borowski, is designed to prevent closures like the one at Crozer Health, where Prospect Medical Holdings laid off more than 3,000 workers and eliminated critical services, leaving Delaware County without vital health care access.
The Health System Protection Act would:
- Ban sale-leaseback schemes that siphon resources from hospitals and inflate long-term costs.
- Give the Office of the Attorney General authority to review and block health care acquisitions that put communities at risk.
- Protect hospitals, nursing homes, and other care facilities from predatory business practices that put profits over patients.
Yesterday, Governor Shapiro stood alongside health care workers, local leaders, and affected community members at Crozer-Chester Medical Center in Delaware County to safeguard Pennsylvanians’ access to care, support displaced workers, maintain emergency medical services, and hold private equity firms accountable for their actions.
See what health care workers, community members, local leaders, and elected officials are saying about the Health System Protection Act and Governor Shapiro’s plan to hold private equity accountable and protect Pennsylvanians’ access to health care:
Dr. Max Cooper, who worked in Crozer’s Emergency Room: “I saw the daily miracles made possible by the amazing staff who walked these halls. I've seen hearts restarted, and gunshot victims resuscitated. This is a place where miracles have occurred, and where they should occur still. But Prospect Medical Holdings ran this hospital into the ground. The day after we closed our trauma unit, we had a young man shot just a block from where we stand today. And he died 20 minutes into his 30-minute drive to Lankenau Hospital. If Crozer were open, we could have saved him. We've saved others just like him countless times before. We must prevent the next Crozer, and we must not let private equity raid Pennsylvania’s hospitals.”
Peggy Malone, President of Crozer-Chester Nurses Association: “Never did I think Crozer would feel so desolate. I knew the health system before Prospect came into our lives and created our nightmares. I can tell you, because I was here, we let the wolf in the door here in Delaware County, and we can never, ever do that again. Governor Shapiro worked tirelessly behind the scenes to save our health system. The Pennsylvania Attorney General's office took bold actions on behalf of our health system. The Delaware County delegation and Delaware County Council worked hand in hand with us every step of the way to stop corporate looters. Still, our health system closed — because that was always Prospect’s plan: to drain every last cent and every drop of blood from our health system before cutting and running back to California.”
Dr. Monica Taylor, Chair of the Delaware County Council: “This is a simple story about greed. Prospect Medical Holdings came to town, bought Crozer, broke our health care system, and paid themselves hundreds of millions of dollars to do it. Not long ago, 576,000 people once had six great hospitals to care for their families. Now they have just two. We strongly support Governor Shapiro — and our Delco delegation — as we reimagine our future and protect ourselves before private equity tears every fabric from the thread of our economy and the futures our residents in Delco — and every Pennsylvanian—deserve.”
Senator Tim Kearney: “Private equity is a cancer in our health system that is destroying our hospitals and driving up the prices of health services for all Pennsylvanians, all while giving us worse service. It’s time that we have tools to prevent private equity from abusing our healthcare system. With the Governor’s support, I’m confident the legislature will move forward on meaningful reforms, including legislation recently introduced by members of the Delaware County Legislative Delegation in both the House and Senate.”
Representative Lisa Borowski: “This is a pivotal moment for us as lawmakers elected by the people to represent their interest. How we choose to respond to the crisis private equity firms are inflicting in our healthcare system will speak volumes to Pennsylvanians about our courage to do what is right. I'm grateful to Governor Shapiro for speaking up and leading the charge. And it is not just Delco residents who depend on us to step up. This is happening in communities across the Commonwealth, creating swath of barren health care deserts, and my good friend Gina Curry knows a lot about that. This is our moment to show Pennsylvanians we won't relent until we've done everything it takes to protect their access to health care.”
Representative Leanne Krueger: “Prospect closed our hospitals, and we know this didn't happen overnight. My colleagues and I have been here on the front lines with these nurses and doctors and paramedics for years fighting Prospect. Prospect has been divesting in our health care system for years while pulling out every bit of profit they could. Rep. Borowski’s bill, which we did pass out of the House last session, is slated for a vote the first week of June when we go back to the Capitol. And this time, we will pass it through the House, our colleagues will pass it through the Senate, our Governor will sign it into law so that what happened here in Delaware County will never happen in Pennsylvania again.”
See what Pennsylvanians are reading and watching about Governor Shapiro’s fight to protect our health care and hold private equity accountable:
Pittsburgh Business Times: Shapiro targets undue private equity influence in hospital ownership
NBC10: Gov. Shapiro pushes for bill to protect healthcare in Pennsylvania
6abc: Gov. Josh Shapiro calls for hospital ownership reform during stop in Delaware Co.
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