Crozer Health is laying off roughly 215 employees as part of its “operational restructuring plan,” the Delaware County hospital system announced Wednesday. Those staff members represent approximately 4% of the company’s workforce.
“We made the difficult decision to restructure our operations in order to ensure that resources are properly allocated to meet our patients’ and our communities’ most pressing health care needs, while at the same time allowing us to stem the financial losses that threaten our ability to continue serving Delaware County,” said Anthony Esposito, chief executive officer of Crozer, in a written statement.
The company claims its restructuring “focuses on removing duplication in administrative oversight and discontinuing underutilized services.”
With Crozer’s parent company, Prospect Medical Holdings, having difficulty paying its bills, Crozer said it also hopes to renegotiate contracts and have more discussions with health plans and on clinical affiliations.
The cash-strapped four-hospital system cited “soaring pandemic and inflation-related costs in such areas as staffing, supplies, and pharmaceuticals” as contributors to its financial state.
Crozer also said litigation over the closure of Delaware County Memorial Hospital has prevented it from reshuffling its services. It wants to transition the facility into a behavioral health center — a plan much of the community opposes.
According to the company, Crozer has been losing about $12 million a month since September 2022.
However, while Crozer said its decision to close DCMH has lessened the bleeding — the company is still losing $7 million a month.
This article first appeared on WHYY.org.
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