Pennsylvania Gov. Shapiro calls for reform of private equity ownership of hospitals

UPLAND, Pa. (WPVI) — Pennsylvania Governor Josh Shapiro stopped in Delaware County on Thursday to call for reform in the commonwealth.

The governor’s visit comes two weeks after Crozer-Chester Medical Center in Upland ceased operations.

The hospital served hundreds of thousands of patients in Delaware County.

During his appearance, Gov. Shapiro announced a new proposal aimed at reforming private equity ownership of Pennsylvania’s hospitals.

He said he is done with private companies draining local hospitals for profit, so he’s backing two bills introduced in the state legislature titled the “Health System Protection Act.”

The bills would ban private equity firms from selling the land the hospitals are built on, then collecting inflated rent back.

It would also allow the Pennsylvania attorney general to block or place conditions on the sale of medical systems to private firms.

Prospect Medical Holdings is a private equity firm from California, with the goal of making a profit for its investors.

After a lengthy legal battle, it declared bankruptcy and shut down Crozer Health System, which included Crozer Chester Medical Center and Taylor Hospital.

The state is allocating $1 million for additional EMS resources for the community, which is now without a local trauma center.