‘Shell game’: When private equity comes to town, hospitals can see cutbacks, closures
Peggy Malone walks the quiet halls of Crozer-Chester Medical Center, the Pennsylvania hospital where she’s worked as a registered nurse for the past 35 years, with the feeling she’s drifting through a ghost town.
The sprawling hospital serves the diverse and densely packed Philadelphia suburb of Upland, and a large proportion of its patients earn low incomes. Malone remembers a time when the hospital, once the largest in the county with nearly 500 licensed beds, was such a hub that neighbors would come to the cafeteria just to have dinner.
Now many of the units sit empty. Gone are the pediatric unit, the transplant program, the surgical residency and the detox program where Malone used to work. Staff has been reduced and supplies are scarce.
Patients’ rooms in the main building haven’t had television since the cable was disconnected last month, she said.
Malone has grown accustomed to telling this story over and over to reporters, to researchers, even to Congress in recent years. Her community — her hospital — is a cautionary tale for what can happen when private equity comes to town.