Bob and Pamela Dorn in their kitchen in Connecticut in 2021, a year before his death( Courtesy Pamela Dorn)
FOR-PROFIT HOSPITAL CHAIN NEVER PUT ASIDE MONEY FOR MALPRACTICE INSURANCE TO COMPENSATE INJURED PATIENTS
By PETER ELKIND
The collapse of Prospect Medical, a for-profit hospital chain plundered by private equity and the company’ s management, has generated a painful litany of woes.
Amid a debt-fueled acquisition spree that saw the small California company grow to 17 hospitals in six states, Prospect was repeatedly cited for dangerous medical care, poor infection control and unsanitary facilities. The company stiffed state and local governments on more than $ 135 million in taxes and didn’ t pay vendors for equipment, services and supplies. It shuttered four safety-net hospitals in a Philadelphia suburb that it had promised to keep open, laying off thousands.
Now, more than a year after the company filed for bankruptcy in January 2025, a new layer of harm has emerged: Prospect had promised to provide malpractice coverage for its hospitals and many of its doctors, but court filings show it set aside no money to pay those costs— or to compensate injured patients.
As a result, hundreds of people with pending malpractice cases against the company may never have a shot at meaningful redress.
The Trial Lawyer 53