State senators plan to reintroduce for-profit healthcare reform package

The closed emergency room at Delaware County Memorial Hospital is a rallying point for a group of state senators calling for reform of Pennsylvania’s for-profit healthcare system. they wrote: (Pete Bannan – Daily Times)

A week after Crozer Health’s recent cuts, four state senators are pushing to reintroduce a series of laws focused on the for-profit health system.

State Senator Amanda Cappelletti, D-17, representing parts of Delaware and Montgomery counties. John Kane, D-9, representing Delaware and parts of Chester counties. Tim Carney of Delaware County, D-26. Anthony H. Williams, his D-8 representing parts of Delaware and Philadelphia counties, reintroduced his memo co-sponsoring the For-Profit Healthcare Reform package.

Kathleen E. Carey

State Senator Tim Carney

“Healthcare in Delaware County is under siege by commercial operators,” read one of the bills. “Crozer Health, Delaware County’s primary hospital system, is on the brink of collapse. Many of Delco’s 575,000 residents will be without medical care.”

The three bills in the package reflect a package introduced last year following Crozer Health’s severe closures and cutbacks. That package failed to pass in the last session, so these senators, whose districts all include at least part of Delaware County, are taking steps to revisit the same issue.

The bill currently being proposed would provide minimum layoffs for mass layoffs, prohibit for-profit corporations from owning hospitals in Pennsylvania, and prevent for-profit health care systems from completing significant transactions in Pennsylvania. Require notice and documents to be filed with the Attorney General.

Senator Anthony Williams

Last week, Crozer Health announced it would cut staff by 215 positions across the system, or about 4%. Employees are considered open positions in the system, and leaving employees are provided outplacement services to assist them in their job search.

The reduction was attributed to financial pressure and negative health insurance plan issues. This focuses on removing duplication of administrative oversight and discontinuing underutilized services.

Senators explain each bill.

“In 2022, Prospect Medical Holdings, the commercial owner of Crozer Health, will close Springfield Hospital,” they wrote. “Then they wanted to close the emergency room and scale back operations at Delaware County Memorial Hospital. But as is so often the case with Prospect Medical, last week Crozer Health System announced it would eliminate 215 jobs and cut medical services, refusing to add to the distress and anxiety of Delaware County residents. Decided.”

Submitted photo

State Senator John Kane

In one of the bill’s briefings, the senator accused Prospect Medical Holdings Inc., the parent company of Closer Health. – A commercial entity owned by a private equity firm. ”

As a result, “companies that run hospitals and health systems will close medical and hospital services and cut staff to generate short-term gains and sizable dividends,” they said.

A summary of each of the three countermeasures:

• In the minimum severance bill, senators proposed that employers must give state Departments of Labor and Industry at least 90 days’ notice, and that employees working 20 or more hours a week in non-managerial positions would be entitled to one week’s severance pay. I suggest that you should give I worked every year.

• Senators also pointed to the case of Hahnemann Hospital in a bill banning for-profit entities from owning or controlling hospitals in Pennsylvania. The Senator, who opened in 1852, said it was “purchased by a private equity firm and forced out of business.”

• The third bill would allow large health systems to do things such as sale/leaseback agreements, purchase or sale of health system facilities or real estate, recapitalization of dividends, roll-ups of sole proprietorships, and changes in majority-owner stock. A degree of oversight is established in certain transactions. wager.

State Senator Amanda Cappelletti

If any of these deals jeopardize the sustainability of health services and access to healthcare, the state attorney general stands ready to challenge the deal in court for violating the public interest. .

It said these deals will be evaluated on a case-by-case basis.

“Join us in creating better policies to protect the Pennsylvania health care system and access to health care for all Pennsylvanians,” the senator wrote.

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