The victim has been identified as 36-year-old Terrell Lubin, according to Philadelphia police.
Police said Lubin was shot once in the chest by a 72-year-old co-worker in the 500 block of N. 57th Street just before noon on Tuesday.
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Lubin was pronounced dead at the hospital a short time later.
Police said the gunman then went inside a home in the 100 block of N. Ruby Street and told officers he is not going back to prison alive.
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After a two-hour-long standoff, police went inside the home but no one was there.
The name of the suspect has not yet been released.
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