Officials tout progress in preserving two Pennsylvania hospitals

Pennsylvania officials say that an agreement is in place to keep Crozer Health afloat, even as they acknowledge there’s work to be done to secure a permanent operator.

Pennsylvania officials have reached a short-term deal to preserve Crozer Health, which operates Crozer-Chester Medical Center (above) and Taylor Hospital in the Philadelphia hospitals. The search continues for a permanent owner.

Crozer Health appeared to be on the brink of closure earlier this month. Crozer’s owner, Prospect Medical Holdings, has filed for bankruptcy and announced plans to shut the system down, until a short-term remedy was found. Crozer operates two hospitals and other care sites in Delaware County, part of the Philadelphia suburbs.

The Foundation for Delaware County agreed to provide the necessary funding to keep operating Crozer for the immediate future. Pennsylvania Attorney General Dave Sunday said last week that an agreement was reached with the foundation to sustain Crozer Health.

Sunday said the foundation would work with Crozer’s receiver, FTI Consulting. The search for Crozer’s new permanent nonprofit owner continues, and the foundation will work with the new owner when a deal is in place.

“As for the efforts to solidify that permanent owner, we appreciate the good faith efforts of regional healthcare providers involved in ongoing discussions,” Sunday said in a statement.

“I am encouraged that the parties, today, remained focused on preserving accessible healthcare for the Delaware County community and maintaining the workforce that provides that essential care,” Sunday said. He added, “There is much work to be done, but we will not stop fighting on behalf of Pennsylvanians."

The foundation also confirmed that there’s an agreement to keep Crozer Health going for the time being.

“We are pleased to announce that the immediate funding pieces necessary to bridge to a long-term solution are in place, per an agreement made with the Commonwealth’s Attorney General,” the foundation said in a statement.

Prospect Medical Holdings, the for-profit company, filed for bankruptcy in January, with the company listing debts of more than $400 million.

Representatives of Prospect and The Foundation for Delaware County testified before a federal bankruptcy court judge Monday, the Delco Times reported. Prospect said it wouldn't be moving to closure and is moving closer to an agreement on a sale, and the foundation has committed $20 million to keep Crozer Health operating, the newspaper reported.

Local and state officials have been frustrated over Prospect’s reduction of services with Crozer Health in recent years.

Crozer Health closed Delaware County Memorial Hospital in 2022. The system also ended acute care at Springfield Hospital in 2022, shifting to outpatient services on that campus.

Crozer Health operates Crozer-Chester Medical Center and Taylor Hospital in Delaware County.

Joyann Kroser, MD, president of the medical staff of Crozer-Chester and Taylor hospitals, spoke about the reduction of services under Prospect at a hearing before state lawmakers earlier this month.

“We have seen firsthand what the consequences are when a health system is run by a for-profit entity whose accountability is to its shareholders,” Kroser said at the hearing. “Over the years, we have seen our beloved health system face closures of two hospitals, continuation of service lines and contraction of our ranks. We have faced shortages of supplies that have led to delays in procedures and delays in patient care. We are working with early generation equipment that is at its end of life.”

Last week, another Pennsylvania hospital received a new lease on life. Two months after closing its doors, the ​​Sharon Regional Medical Center in western Pennsylvania reopened last week.