Crozer Health system in Pennsylvania will remain open after potential shutdown, officials say
The Crozer Health system will remain open for the "immediate future" after Prospect Medical Holdings warned the Delaware County health system could possibly shut down, Pennsylvania Attorney General Dave Sunday and The Foundation for Delaware County announced on Sunday night.
At a meeting in Harrisburg on Sunday, a Texas federal bankruptcy court judge, The Foundation for Delaware County, Crozer's parent company Prospect Medical Holdings, and AG Sunday reached an agreement to keep the health system open as they work to find a "long-term solution."
A hearing is scheduled for 10:30 a.m. on Tuesday in bankruptcy court.
"I am pleased that the parties focused on how to move forward on behalf of Pennsylvanians, instead of how we got here, and worked to an agreement after more than six hours of negotiations," Sunday said in a statement. "I thank all parties for their good faith negotiations and sacrifices made to make this happen. This work was done on behalf of the thousands of people and families who depend on Crozer Health System for essential services — and the many hardworking professionals who provide that care."
According to a news release, The Foundation for Delaware County "committed essential funding" to in order to keep Crozer-Chester Medical Center, Taylor Hospital and other facilities in the health system open. It's unclear how much money the foundation provided. The foundation was formed in 2016 with nonprofit assets after Prospect Medical Holdings purchased Crozer in 2016.
"We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider," Frances Sheehan, the president of The Foundation for Delaware County, said in a statement. "For three years, we have advocated for the residents of Delaware County, supporting negotiations and exploring every available option to keep the healthcare system from closing. While we cannot sustain an entire health system, we remain committed to ensuring continued access to care."
Anthony Esposito, the CEO of Crozer, and representatives from FTI consulting, the court-appointed receiver who will oversee the management of the hospital, attended the meeting, according to a news release. Delco government leaders were there virtually.
Sunday and The Foundation for Delaware County said more details will be released in the coming weeks as a "permanent solution is pursued."
"You know, nobody's ever really done this in this manner trying to do this nonprofit entity, inviting other health systems to be part of it to try and figure out and how to keep the hospital open and operating for you know the next month, six weeks, whatever," State Sen. Tim Kearney said.
State Sen. John Kane asks AG, Delco DA to press charges against Prospect
Pennsylvania state Sen. John Kane on Monday called upon Attorney General Dave Sunday and Delaware County District Attorney Jack Stollsteimer to press criminal charges against Prospect Medical Holdings and its board members. Kane, a Democratic state senator, serves part of both Chester and Delaware counties.
"We've been kicking this can down the road and I've had enough of it," Kane said.
Prosecutors and a public relations firm contracted by Prospect declined to comment on Kane's request.
Prior to the Sunday night announcement, Prospect Medical Holdings said there was only enough money to keep the Crozer-Chester Medical Center, Taylor Hospital and the health system's other facilities open through Friday. Last week, sources said the hospital was in danger of missing payroll.
The Crozer Health system was removed from Prospect Medical Holdings and placed into receivership last month. Delaware County and the state provided $20 million at that time to keep the system running, but most of that money is gone.
Crozer employs about 3,000 people, and a closure would create a huge loss in income tax revenue for the community in Upland Borough.
Delaware County and Chester City officials have been fighting to keep the health system open and find a new owner, but those efforts have failed.
Last week, Pennsylvania Gov. Josh Shapiro said he was frustrated about Crozer Health system's potential closure and called on other hospital networks in the region like Main Line Health and Penn Medicine to do more.
"I'm annoyed that our health care institutions in the Philly area aren't stepping up to do more," Shapiro said. "Instead of this problem landing on their doorstep, they should be more affirmative and step up and do more."
Patients, employees at Crozer feeling some relief — for now
Keeping the Crozer Health system means that patients still have a place for care and 3,000 employees still have jobs beyond Friday.
Before Sunday night's announcement, Crozer healthcare workers — and their patients — were in limbo. Now, they said, they feel relief — at least for now.
"We actually were just told this morning, right before class," said Rachel McLead, who is a student at Widener University in the Crozer Radiologic Technology program. "Because we didn't know if we'd even have class next week."
McLead is training to be a radiology technologist, but with funding only temporary, her education remains uncertain.
"This is our future, and we don't know what the next is going to look like," McLead said. "We're just hoping to stick together and finish the program."
Patients, too, are feeling cautiously optimistic.
"People in the community rely on this," said Daniel Slegel, who gets physical therapy at Crozer.
"It's right in the middle of everything," he added "We can all get here by bus, we can all walk here. All of our families work here. To lose this, it would leave a big hole in the community."
Smiles Nwachukwu, a nurse who provides IV care at several hospitals, including Crozer-Chester, agreed with Slegel.
"This neighborhood is always getting patients from 95 and all around," Nwachukwu said.
Peggy Malone, the president of the Crozer-Chester Nurses Association, said they're still waiting for a timeline.
"We're grateful for this temporary reprieve, but we want this hospital to be open long after we're gone," Malone said.
Employees at Crozer Health said their fight to keep this medical center open is not over.
On Tuesday at 4 p.m., employees will hold a solidarity rally with community members, clergy and local elected officials to call for a long-term solution.