Deal reached to keep Crozer Health System open as search for long-term solution continues
MEDIA, Pa. - An agreement has been reached to keep the Crozer Health System in Delaware County "open and operational" as the search for a long-term solution continues.
The Office of the Attorney General released a statement on Friday after a meeting with several parties, including Prospect Medical and the governor's office.
The statement also said "we look forward to updating the bankruptcy court, which has ultimate approval authority over plans for Crozer, at our next hearing."
A Texas bankruptcy judge had ordered the parties to meet by Monday afternoon to smooth over a disagreement about funding that emerged earlier this week.
What we know
Pennsylvania Attorney General Dave Sunday announced Friday night that a deal was reached to keep Crozer Health System in Delaware County "open and operational."
"I am pleased to announce that an agreement was reached with The Foundation for Delaware County," Sunday shared in a statement.
The future of Crozer Health System has remained uncertain after a judge recently called an emergency meeting due to a funding issue that threatened a life-saving sale.
"The Foundation will be engaged with the still-developing plans for Crozer's restructuring — first under a receiver, FTI Consulting, and ultimately, its permanent non-profit owner," Sunday's statement continued.
As all parties continue to work towards finding a "permanent owner," Sunday said he's confident that they "remain focused on preserving accessible healthcare for the Delaware County community and maintaining the workforce that provides that essential care."
What they're saying
The Delaware County Foundation released the following statement after Sunday's announcement:
"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.
We are encouraged that the parties, today, remain focused where they should be — preserving accessible healthcare for the Delaware County community and maintaining the workforce that provides that essential care.
Present for today's meeting were representatives from the Office of Attorney General, Governor's Office/Office of General Counsel, The Foundation for Delaware County, a Patient Care Ombudsman, FTI Consulting, Prospect Medical, Delaware County, and the Unsecured Creditors Committee (UCC).
We look forward to joining with the Attorney General to update the bankruptcy court — which has ultimate approval authority over plans for Crozer — at our next hearing."
What's next
Sunday said they will update the bankruptcy court overseeing the sale at their next hearing.
"There is much work to be done, but we will not stop fighting on behalf of Pennsylvanians," Sunday said.
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