A Pennsylvania union said it is concerned about potential effects from a for-profit hospital operator's planned acquisition of Springfield, Pa.-based Crozer-Keystone Health System, according to a Delaware County Daily Times report.
Prospect Medical Holdings, based in Los Angeles, and Crozer-Keystone announced earlier this month they inked a definitive agreement for Prospect to acquire the health system.
But now the Pennsylvania Association of Staff Nurses and Allied Professionals, which represents about 600 nurses at Crozer-Chester Medical Center in Upland, Pa., and 90 Crozer-Keystone paramedics, are voicing concerns.
Here are four things to know about the union's concerns.
1. Job changes at Crozer-Keystone are not the union's major concern, as Prospect will assume Crozer-Keystone's outstanding pension liability and offer employment to all Crozer-Keystone employees and management, subject to customary to pre-employment screenings.
2. However, the union is concerned Prospect may be sold to another for-profit hospital chain not long after the deal with Crozer-Keystone closes, said Bill Cruice, executive director of the Pennsylvania Association of Staff Nurses and Allied Professionals, according to the report. "We have seen recent articles in the business press that indicate that the owners of Prospect Medical Holdings, the 'private equity fund' Leonard Green Partners, is actively attempting to sell Prospect for a quick profit," Mr. Cruice said, according to the report, adding the concern is such private equity funds "are under pressure to turn around quick profits for their billionaire investors."
"While the Prospect representatives have denied this, we remain very concerned about their intentions," Mr. Cruice added.
3. In response to those claims, Prospect officials said in a statement they have talked with additional sources of investment into the company's overall growth strategy, according to the report. But, they noted, the company is not for sale to a strategic buyer such as another healthcare provider, health plan or health system.
4. Amid the union's concerns, Mr. Cruice told the Delaware County Daily Times he also hopes Prospect's plans include funding for more Crozer-Keystone nurses.
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