Health
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Crozer Health System Closure Averted (For Now)
Crozer Health System Averts Immediate Closure, But Future Remains Uncertain
Upland, PA – The Crozer Health system, facing potential closure of its Crozer-Chester Medical Center and Taylor Hospital, has temporarily averted shutdown after securing enough funding to meet a Wednesday deadline. However, the long-term viability of the Delaware County hospital system remains precarious.
Prospect Medical Holdings, the California-based parent company of Crozer Health, had warned that without $9 million by Wednesday afternoon, it would begin closure procedures as early as Thursday. The funds are needed to cover daily operational costs, including payroll. This threat followed a recent $26 million influx that temporarily staved off closure just two weeks prior. A total of approximately $60 million has been invested in Crozer Health over the past few months to avoid closure. The potential closure jeopardizes the jobs of approximately 3,000 medical care providers and leaves a significant gap in healthcare access for Delaware County residents.
While the Pennsylvania Attorney General’s office announced late Wednesday that a closure notice would not be issued, the $9 million needed to bridge the immediate gap is still being pursued. Officials emphasized that the situation remains extremely fluid, with a hearing scheduled for Thursday to address the issue further. A hotline has been established for residents seeking updates and guidance on local healthcare resources: (484) 276-2100.
The ongoing uncertainty stems from stalled negotiations with an unnamed consortium of potential nonprofit buyers. These negotiations are hampered by disagreements over long-term funding. To date, approximately $40 million has been invested to keep Crozer afloat, including $20 million from state and county taxpayers and another $20 million from the Foundation for Delaware County. The Foundation, however, has indicated it is financially tapped out and will not contribute further funding. A Delaware County judge even ruled against the Foundation giving more money to Crozer’s parent company.
U.S. Bankruptcy Judge Stacey G. C. Jernigan expressed frustration over the stalled progress, emphasizing the gravity of the situation for hospital workers and patients. She stressed that any funds allocated towards a sale would be strictly for maintaining operations, with no portion benefiting Prospect or its creditors. The judge ordered an early morning video conference to push for a resolution, highlighting the urgency of the situation and the hope to avoid a complete closure. The Attorney General’s office acknowledges past mismanagement within Prospect Medical Holdings as a factor complicating the process, but stresses that all parties are now working urgently to resolve the situation.
Upland, PA – The Crozer Health system, facing potential closure of its Crozer-Chester Medical Center and Taylor Hospital, has temporarily averted shutdown after securing enough funding to meet a Wednesday deadline. However, the long-term viability of the Delaware County hospital system remains precarious.
Prospect Medical Holdings, the California-based parent company of Crozer Health, had warned that without $9 million by Wednesday afternoon, it would begin closure procedures as early as Thursday. The funds are needed to cover daily operational costs, including payroll. This threat followed a recent $26 million influx that temporarily staved off closure just two weeks prior. A total of approximately $60 million has been invested in Crozer Health over the past few months to avoid closure. The potential closure jeopardizes the jobs of approximately 3,000 medical care providers and leaves a significant gap in healthcare access for Delaware County residents.
While the Pennsylvania Attorney General’s office announced late Wednesday that a closure notice would not be issued, the $9 million needed to bridge the immediate gap is still being pursued. Officials emphasized that the situation remains extremely fluid, with a hearing scheduled for Thursday to address the issue further. A hotline has been established for residents seeking updates and guidance on local healthcare resources: (484) 276-2100.
The ongoing uncertainty stems from stalled negotiations with an unnamed consortium of potential nonprofit buyers. These negotiations are hampered by disagreements over long-term funding. To date, approximately $40 million has been invested to keep Crozer afloat, including $20 million from state and county taxpayers and another $20 million from the Foundation for Delaware County. The Foundation, however, has indicated it is financially tapped out and will not contribute further funding. A Delaware County judge even ruled against the Foundation giving more money to Crozer’s parent company.
U.S. Bankruptcy Judge Stacey G. C. Jernigan expressed frustration over the stalled progress, emphasizing the gravity of the situation for hospital workers and patients. She stressed that any funds allocated towards a sale would be strictly for maintaining operations, with no portion benefiting Prospect or its creditors. The judge ordered an early morning video conference to push for a resolution, highlighting the urgency of the situation and the hope to avoid a complete closure. The Attorney General’s office acknowledges past mismanagement within Prospect Medical Holdings as a factor complicating the process, but stresses that all parties are now working urgently to resolve the situation.
