Hospital closures led to the mass layoff that is prompting emergency response from two Pennsylvania counties.
A hospital system in Pennsylvania is closing multiple locations and more than 2,600 people will be laid off.
At least one county, two cities, and one township have issued emergency declarations as a result. Eight closures will take place in Delaware and Chester counties with a total of 2,651 people being laid off.
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 and Industry informing of the closures.
Most of the layoffs will occur at the Crozer-Chester Medical Center in Delaware County, which plans to terminate 1,908 employees.
The federal WARN Act requires employers to provide notice 60 days in advance of a covered-business closing and covered-business mass layoff. The notice was dated April 21.
Prospect was unable to provide the required 60 days notice to the state due to unforeseen circumstances and will be laying off employees between Friday and May 2nd.
Prospect filed for Chapter 11 bankruptcy in January. Leading up to and since the filing, Prospect said it was working 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.”
A buyer had agreed to purchase the operations but later cancelled the deal. Funding was also offered from the University of Pennsylvania Health System, but that also fell through.
Without the buyer or additional funding, Prospect said it was forced to cease operations and permanently lay off all employees.
Delaware County issued an emergency declaration. On the county website, it says, “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.”
At least three municipalities in Delaware County have also issued emergency declarations.
The city of Chester is anticipating an increase in transport time to medical facilities with the closure of the Crozer Emergency Room. This prompted Chester Mayor Stefan Roots to also sign an emergency declaration.
Brookhaven Mayor Denise Leslie and Ridley Township have also issued emergency declarations in response to the closures.
