Pennsylvania Governor Shapiro targets private equity firms in healthcare with ambitious reform plan

Hoodline – Saturday, May 17, 2025
By Michael Taylor

In a recent display of government stepping in to safeguard healthcare accessibility, Pennsylvania Governor Shapiro has laid out an ambitious plan squarely aimed at the practices of private equity firms within the state’s healthcare sector. This move comes on the heels of the Crozer Health closure orchestrated by Prospect Medical Holdings, which resulted in over 3,000 healthcare workers losing their jobs. According to the Pennsylvania Official Website, Chester Medical Center became the stage where Governor Shapiro, alongside laid-off workers and community members, communicated the details of his administration’s response to this growing concern.

The Governor’s strategy includes not only immediate relief to mitigate the impact of the closure but also a legislative push to significantly slow to address systemic issues. His administration has pledged $1 million to ensure the continuity of emergency medical services in Delaware County in cooperation with its respective delegation. The Governor also promised that the Pennsylvania Department of Health would oversee a cautious and orderly termination of services. He emphasized the consequential role of private equity firms in eroding the state’s healthcare stability, equating their actions to that of ‘corporate raiders’ who prioritize profits over patient care. “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 told the gathering, as per the Pennsylvania Government Website.

Seizing the moment to create lasting change, Shapiro has urged the General Assembly to consider the Health System Protection Act. This proposed legislation gives the Attorney General the authority to halt mergers and acquisitions that could lead to an adverse impact on healthcare access. With this act, the Governor aims to install a legal mechanism that prevents private equity firms from making healthcare-related decisions that could put the public at risk.

During his address, Governor Shapiro made his stance unmistakably clear, wielding a narrative of urgent protectionism against what he perceives as an onslaught of private interest over public well-being. “Private equity has no place in our health care system,” he proclaimed, sending a resolute message that he intends to shield communities from what he views as predatory financial practices. The proposed Health System Protection Act is more than just a temporary bandage; it symbolizes a push to permanently change how private equity firms operate within Pennsylvania when it comes to healthcare. To reinforce his administration’s commitment, Shapiro assured ongoing scrutiny by state health authorities to reach a safe and structured conclusion to the healthcare services wind-down.

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