During a bankruptcy court session on Monday evening, lawyers representing Prospect Medical Holdings, which oversees Crozer Health, informed the judge that considerable advancement has been achieved in formulating a plan.
long-term solution
to maintain the functionality of the healthcare system in Delaware County, Pennsylvania.
The arrangement will involve a collaboration between Delaware County and Penn Medicine, supported by the commonwealth and other entities, according to Bill Curtin, who is Prospect’s bankruptcy attorney.
“As we speak, it’s before the potential buyers,” Curtin stated.
However, a representative from Penn Medicine contradicts that version of events.
In an email sent to CBS News Philadelphia, a representative stated, “The reports indicating that Penn Medicine is in talks to acquire Crozer Health are incorrect.”
“We are currently collaborating with various partners to investigate possible solutions aimed at maintaining patient care continuity in southern Delaware County. For this initiative to succeed, we’ll need financial support and cooperation from several key entities such as healthcare organizations, the state government, local authorities, and philanthropic institutions,” according to the statement.
The delicate agreement fell apart over the previous weekend when a member of the Delaware County Foundation filed a lawsuit aiming to prevent further funds from being allocated towards maintaining the operations at Crozer Health.
The progress led to anxiety and disarray among roughly 3,000 staff members concerned about potential job losses, along with numerous patients dependent on the healthcare system.
On Friday, it was agreed upon that the foundation will keep providing financial support and offer essential bridging funds for Crozer.
The organization stated that it will provide an extra $13 million, including $7 million that has been received this week and the remaining $6 million scheduled for April 1st.
Frances Sheehan, who serves as the foundation’s executive director, stated during her testimony that internally, the board of directors grappled with worries concerning the preservation of various charitable programs within Delaware County. However, she added, “We understand the importance of our hospitals and acknowledge our duty in sustaining them as vital support systems.”
Peggy Malone, who leads the Crozer-Chester Medical Center nurses union, stated, ‘We understand the importance of this facility for our local area.’ She added, ‘My belief has been steadfast—we will reach our destination with this hospital remaining operational. We simply must continue ensuring everyone else shares this conviction, and once more, today marks an exceptionally positive turn of events.’
In a statement, Pennsylvania State Senator Tim Kearney said that the hearing held on Monday provided “a long-awaited beacon of hope for the future of Crozer Health.”
At the same time, the judge remarked that it seemed she was almost ready to breathe a sigh of relief due to this new turn of events.
Crozer Health manages the Crozer-Chester Medical Center located in Upland, as well as Taylor Hospital in Ridley Park and various additional healthcare facilities in the vicinity.
A further hearing has been scheduled for Wednesday.