Shapiro seeks new laws against private equity in healthcare

Governor Josh Shapiro visited Crozer-Chester Medical Center in Delaware County to discuss his Administration's efforts to protect access to health care in Pennsylvania by reforming private equity operations. This visit comes after the closure of Crozer Health by Prospect Medical Holdings, resulting in over 3,000 healthcare workers losing their jobs.

During the visit, Governor Shapiro outlined measures to support affected workers, maintain essential emergency services, and hold private equity firms accountable. He called on the General Assembly to pass the Health System Protection Act. This newly introduced legislation aims to curb exploitative practices by private equity and empower Pennsylvania's Attorney General to block deals that threaten access to care. This proposal follows Governor Shapiro's earlier call for reforms during his budget address.

Governor Shapiro also announced a $1 million funding initiative coordinated with the Delaware County delegation. The funds are intended to sustain emergency medical services (EMS) in Delaware County and ensure they remain available and responsive. The Pennsylvania Department of Health will oversee a safe wind-down of services.

"Private equity has no place in our health care system," stated Governor Shapiro. "We've seen what happens when corporate raiders like Prospect Medical Holdings prioritize profits over patients - families lose access to care, health care workers lose their jobs, and communities across the Commonwealth suffer."

Governor Shapiro emphasized the need for legislative action: "We cannot allow for-profit companies to treat our hospitals like piggy banks they can smash and walk away from. We've taken action to help those affected - but to protect communities across our Commonwealth, we need to take real action and change the laws that allow private equity to raid our health care system and threaten Pennsylvanians' livelihoods."

Speakers at the event included Peggy Malone, President of Crozer-Chester Nurses Association; Dr. Max Cooper, Crozer ER doctor; Dr. Monica Taylor, Delaware County Council Chairwoman; Senator Tim Kearney; Representative Lisa Borowski; and Representative Leanne Krueger.