Emergency hearing set for Tuesday on possible sale of Crozer Health system in Delaware County, Pennsylvania
An emergency hearing is set for Tuesday on the possible sale of Delaware County's Crozer Health system.
A plan is expected to be unveiled in bankruptcy court that could end months of speculation about the future of the financially distressed health care provider.
Last week, lawyers for Prospect Medical Holdings, Crozer's parent company, the Pennsylvania Attorney General's Office and Delaware County discussed progress in advancing what's known as an asset purchase agreement.
A county lawyer said they were working to form a
consortium to rescue the Crozer system
and prevent a shutdown.
A lawyer for
Prospect said during a bankruptcy hearing last week
that the solution for Crozer will be a partnership between Delaware County and Penn Medicine, but a spokesperson for the Philly-based health system disputed that claim.
"We are actively working with a range of partners to explore potential solutions to ensure care continuity for patients in southern Delaware County. A successful plan will require funding commitments and assistance from multiple stakeholders, including health systems, the state, county, and foundations," a Penn spokesperson said in a statement.
Two weeks ago, a board member with the Foundation for Delaware County sued to halt foundation funds from being used to keep the hospitals open, fearing the money would end up in Prospect Medical's pockets. But then, an agreement was reached during an emergency meeting, and the foundation provided stopgap funding of $13 million to keep the health system running.
Dr. Monica Taylor, the chair of Delaware County Council, said last week she's been "cautiously optimistic" about getting a deal done to keep the health system operating.
"The county has two work in two different ways, right? We're trying to help be a facilitator here, but we're also helping to do contingency planning in case we aren't able to save the hospital system," Taylor said. "And how do we then also keep service in the areas that no longer have these resources and healthcare systems?"
The
Crozer Health system employs 3,000 people
, and
patients have remained in limbo
as attorneys for Prospect and Delaware County and state officials work to get a deal done.
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