Pa. AG sues Prospect Medical Holdings for ‘corporate looting’

From Delco to Chesco and Montco to Bucks, what about life in Philly’s suburbs do you want WHYY News to cover? Let us know! The Pennsylvania Office of Attorney General filed a complaint in the Delaware County Court of Common Pleas Monday evening, accusing Prospect Medical Holdings of mismanagement and “corporate looting.” Prospect intended on making more service cuts at Crozer Health , the struggling four-hospital system in Delaware County. Attorney General Michelle Henry decided to intervene.

“Our lawsuit intends to have a receiver, an independent third party with experience in hospital management, appointed by the court in the immediate future to oversee the Crozer system until a suitable new owner can be put in place,” Henry said at Tuesday’s press conference. If approved, the receiver would have “complete management authority” over Crozer, adding an additional level of transparency officials have found to be lacking from Prospect. The Inquirer first reported that management firm FTI Consulting will be the likely choice to run Crozer.

“Today’s hasty, ill-considered, and completely unnecessary action by the Office of the Attorney General will only serve to harm Crozer Health and reduce health care access for patients in the communities we serve,” Prospect said in an emailed statement. The California-based company said Crozer already employs FTI on several projects. CHA Partners deal to acquire Crozer Health collapses CHA Partners had signed a letter of .