Attorneys say they're close to deal to keep Crozer Health open, details for Delaware County system remain sparse
In a bankruptcy court hearing late Monday afternoon, attorneys for Crozer Health's parent company Prospect Medical Holdings told the judge significant progress has been made in developing a long-term solution to keep the Delaware County, Pennsylvania, health system operating.
The solution "will be a partnership between Delaware County and Penn [Medicine] with support from the commonwealth and other parties," Prospect's bankruptcy attorney Bill Curtin said.
"It's in front of the potential purchasers now," Curtin said.
A spokesperson for Penn Medicine, however, disputes that account.
In a statement emailed to CBS News Philadelphia, a spokesperson said, "Reports suggesting that Penn Medicine is in negotiations to acquire Crozer Health are inaccurate."
"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," the statement says.
The fragile deal blew up late last week when a Foundation for Delaware County board member sued to block any more money from going into efforts to keep Crozer Health operating.
The development caused panic and confusion as nearly 3,000 employees worried about the possibility of losing their jobs as well as the many patients who count on the health system.
On Friday, an agreement was reached that the foundation would continue to participate financially and provide necessary stopgap funding for Crozer.
The foundation announced it's providing an additional $13 million, with $7 million arriving this week and the balance of $6 million on April 1.
Frances Sheehan, the foundation's executive director, testified that internally, foundation board members wrestled with concerns about maintaining other charitable services in Delaware County, but said, "We also know we need our hospitals and we recognize our responsibility in providing a lifeline for these hospitals."
"We know what the value of this hospital is to this community," Peggy Malone, the president of the Crozer-Chester Medical Center nurses union, said. "I've always believed that we're going to get to the finish line and this hospital is going to stay open, we just have to keep keeping everybody else believing that, and again, today is a really great day."
In a statement, Pennsylvania state Sen. Tim Kearney said Monday's hearing "brought a much-needed sign of hope for the future of Crozer Health."
Meanwhile, the judge said it sounded like this development left her on the verge of breathing a sigh of relief.
Crozer Health operates Crozer-Chester Medical Center in Upland, Taylor Hospital in Ridley Park and other health care facilities in the area.
Another hearing is set for Wednesday.
