Laid off from Crozer Health.
Crozer didn't run a layoff round. Its parent went into Chapter 11, both hospitals closed inside a week in April 2025, and 2,651 jobs went onto one WARN filing, which sends your last pay and your notice claim to a bankruptcy estate and your pension to a federal insurer, with no HR department left in between.
At a glance
What's known about Crozer Health severance and layoffs
- 2,651 jobs, Delaware and Chester counties · WARN filing, April 2025
- April 26, 2025 · Taylor Hospital closed
- April 30, 2025 · Crozer Chester Medical Center closed
- More than 3,000 health care workers · Total job loss, Commonwealth's count
- No terms on record · Severance
- $1.6 million, against $21 million sought · WARN claims estimated for plan feasibility
- PBGC taking steps to assume the plan · Crozer-Keystone pension plan
- One, all time · Filings in our tracker
Recent Crozer Health layoffs
Crozer WARN claims estimated at $1.6 million in December 2025
At a December 2025 hearing, the judge sided with Prospect and estimated the WARN Act claims at $1.6 million for feasibility purposes, against more than $21 million former employees sought for the 60-day notice period. That estimate was set for plan feasibility, not as a payout to any individual worker.
Previous rounds
Crozer Health layoff history
Crozer Health closed its last two hospitals four days apart. Delaware County dates it, with Taylor Hospital closing April 26, 2025 and Crozer Chester Medical Center closing April 30. One WARN filing dated April 25, 2025 carried 2,651 jobs across Delaware and Chester counties, and the Governor's office counted more than 3,000 health care workers out of work. The county traces how it got there to Prospect Medical Holdings buying the system in 2016 under a ten-year clause restricting closures, closing two Delaware County hospitals in 2022, then filing for Chapter 11 and closing the last two in 2025. That sequence matters because it's why your questions now go to a bankruptcy estate and a few public agencies instead of anyone who used to sign your reviews.
The notice was short, and what it's worth so far is an estimate rather than a payment. Rep. Leanne Krueger's office, whose district held the hospitals, wrote that the federal WARN Act requires at least 60 days' written notice before closing a facility with 100 or more employees and that Prospect violated it by giving only one week's notice. Former employees sued for more than $21 million covering wages, bonuses, accrued holiday and vacation pay, and insurance benefits for the required 60-day period, and in December 2025 the judge estimated those claims at $1.6 million for feasibility purposes. Prospect's counsel said the plan confirmed on December 12, 2025 in the Northern District of Texas gives certainty of payment for all administrative and priority creditors. Where your own claim sits in that order isn't in the reporting we track. The case docket carries it, and Delaware County publishes the restructuring site holding the dockets, documents and calendar.
Last pay and unused leave follow different rules. Pennsylvania's Department of Labor and Industry says the Wage Payment and Collection Law requires employers to pay the communicated pay rate and schedule, and lists failure to pay a last paycheck when employment ends among the violations it investigates. Accrued leave is narrower. The same agency states that paid sick leave, holiday pay, or other hours not actually worked aren't protected under the Wage Payment and Collection Act unless expressly promised in official business documents, like an employee handbook or memo. So whether unused paid time off was ever owed turns on an express promise in an official document, a handbook or a memo or your union contract, which is worth digging out before you conclude you were shorted. On unpaid health claims, the Labor Department says that if your plan sponsor has declared bankruptcy, you may want to consider filing a proof of claim with the bankruptcy court, which runs on the case's deadlines rather than the state's.
Retirement money and health coverage came apart as the system wound down. PBGC said it's taking steps to assume responsibility for the Crozer-Keystone Health System Employees Retirement Plan, because the plan meets the criteria for termination and doesn't have enough money to pay all promised benefits. A 401(k) sits elsewhere. The Labor Department says defined contribution plans aren't insured by PBGC, and that a terminating retirement plan must vest your accrued benefit 100 percent, while ERISA keeps retirement funds separate from the employer's business assets, so they should be secure from the company's creditors. Coverage is the harsh one. The same guidance says an employer that discontinues all its health plans leaves no COBRA continuation coverage available, and names two documented replacements, special enrollment in a spouse's plan requested within 30 days of losing coverage, or a Marketplace plan selected within 60 days before or after losing job-based coverage. In this state that marketplace is Pennie.
Unemployment worked for many Crozer people and stalled for others, often before eligibility was ever the question. The Department of Labor and Industry said it had paid benefits to more than 1,000 former Crozer employees with hundreds more applying, and that eligibility isn't automatic because each claim is reviewed individually. A supervising attorney at Philadelphia Legal Assistance told CBS that the largest share of workers coming to that organization were struggling to get access to an online account, to set up or recover a username and password, and to complete identity authentication. Legal aid guidance written for this closure puts Pennsylvania benefits at up to 26 weeks, paid from the date of the initial application, which is why a jammed login costs real money, and sets a 21-day deadline to appeal a determination, with some allowance for a late appeal on a valid reason.
Public re-employment help for this workforce came with numbers attached. The Governor's office described 10 live virtual Rapid Response meetings on unemployment, job training and health insurance, and a job fair connecting over 1,000 displaced Crozer employees with more than 200 employers, and Delaware County counted over 800 visits to the CareerLink Crozer Transition Center and 366 workers hired at the May 13, 2025 job fair. If you hold a clinical license, the most Crozer-specific help is licensure, since PA CareerLink Delaware County says it connects former Crozer employees to the PA Department of State for transferring medical licenses for a job in Delaware or New Jersey through an expedited process and notes that because Pennsylvania isn't an NLC state, a nurse needs a license in each state where they practice. With no employer left to call, the Labor Department points to pay stubs and benefit statements as what establishes your employment dates, compensation and plan contributions. Whatever you still hold of those, put it somewhere you can find it before you need it.
Reporting on previous Crozer Health layoff rounds
April 2025 · One WARN filing dated April 25, 2025 listed 2,651 jobs across Delaware and Chester counties, and Delaware County recorded that Taylor Hospital closed April 26 and Crozer Chester Medical Center closed April 30
No terms on record. Former employees' WARN claims were estimated at $1.6 million for plan feasibility in December 2025, against more than $21 million sought.
2022 · Prospect closed Springfield Hospital and Delaware County Memorial Hospital three years before the last two closed. Our tracker holds one filing matching this company all time, so it carries no count for these
How Crozer Health's layoffs compare to other companies
Most pages here track a company that cut people and kept operating. Crozer is the other kind. The employer wound down, and the answers moved to a bankruptcy docket, a federal pension insurer, and state agencies that never worked for Prospect.
What to do after being laid off from Crozer Health
- File for unemployment in the state where you worked. Benefits run from your filing date, and severance usually doesn't block you. Crozer Health's biggest hubs: Pennsylvania. Somewhere else? Every state is here.
- Apply for financial and hardship assistance. Unemployment supplements income, but food benefits, health coverage and utility help are often available as well. Here's some of what Crozer Health's hub states run: Pennsylvania, and every other state is here.
- Mind the health insurance window. Losing coverage opens a 60-day special enrollment period, and an ACA plan usually beats unsubsidized COBRA. Compare your options before the employer coverage lapses, and read how the COBRA clocks run if you are weighing it seriously.
- Get your real runway number. Severance plus savings divided by reality. The calculator takes five minutes.
- Know which clocks are already running. Severance review windows, COBRA election, visa grace periods, and 401(k) rollovers all run on federal deadlines that started at termination. All five deadlines are here.
Crozer Health layoff and severance questions
Why did Crozer Health close?
Delaware County's record says Prospect Medical Holdings bought the system in 2016 under a ten-year clause restricting hospital closures, closed two Delaware County hospitals in 2022, then filed for Chapter 11 and closed the last two in 2025. The Governor's office said Prospect paid $300 million for Crozer and pledged to keep it open for at least 10 years, then declared bankruptcy just nine years later.
Did Crozer Health workers get severance?
No terms on record. What the record holds instead is what former employees asked the bankruptcy court for, more than $21 million covering wages, bonuses, accrued holiday and vacation pay, and insurance benefits for the required 60-day period. Whatever you were handed at separation is specific to you, and our severance article lists the checks worth running against it.
What happened to the Crozer-Keystone pension plan?
The Pension Benefit Guaranty Corporation said it's taking steps to assume responsibility for the Crozer-Keystone Health System Employees Retirement Plan, because the plan meets the criteria for termination and doesn't have enough money to pay all promised benefits. PBGC also said the plan is covered under Title IV of ERISA, and that its insurance program pays the benefit the plan provided, up to the limits set by law. Those limits are the part worth checking against your own numbers.
Can former Crozer Health employees still get COBRA?
Labor Department guidance for workers in an employer bankruptcy says that if your employer discontinues all its health plans, COBRA continuation coverage won't be available, and you and your dependents will have to seek other coverage. Where that applies, the same guidance sets a Marketplace special enrollment window of 60 days before or after losing job-based coverage, and in this state that marketplace is Pennie.
How long can former Crozer patients still request their medical records?
Delaware County says the bankruptcy court approved destroying Prospect's remaining patient records, with all Crozer Health System records due for destruction after March 2, 2027. Many Crozer staff were Crozer patients too, so retrieve yours early.
Where do I file for unemployment after being laid off from Crozer Health?
In the state where you worked, not where the company is headquartered. Crozer Health's biggest U.S. hubs are Pennsylvania. Severance usually doesn't block you from filing, and benefits run from your filing date, so file the same week.
Is it OK to file for unemployment after a layoff at Crozer Health?
Yes. Unemployment insurance is funded by payroll taxes employers pay on wages, the claim never appears on credit reports or background checks, and future employers cannot see it. If the hesitation itself is the obstacle, whether filing is OK has its own article.
What happens to my health insurance after a layoff at Crozer Health?
Your plan sets the end date rather than the law, so the separation packet is where that date actually lives, and it is often the last day of the month rather than your last day of work. After coverage ends, COBRA lets you keep the identical plan by paying the whole premium yourself, up to 102 percent of what the plan really costs, which lands as several times the payroll deduction you were used to. You get 60 days to elect, counted from the later of coverage ending or the election notice arriving, and electing reaches the coverage back to the day the old plan stopped so no gap exists. How continuation coverage works walks the timing, and whether to take it rather than a marketplace plan is a separate decision.
Should I sign the severance agreement right away?
First pin down how much review time you actually have. If you're 40 or older, federal law gives you 21 days to consider an agreement that waives age claims, 45 in a group layoff, and a waiver signed under a shorter deadline can be invalid. If you're under 40, no federal window applies and the deadline in your packet may be real, so confirm it in writing and ask for more time if you need it. Use whatever window you have to read the release terms, especially non-disparagement and no-lawsuit clauses, and don't stall past a real deadline, because offers can be withdrawn.
Can I collect unemployment if I got severance from Crozer Health?
Usually yes, though some states delay benefits until severance pay periods end, and lump sums are treated differently than salary continuation. Check your state's rules on our state benefit pages, and file immediately either way so your claim date is locked in.