Watch CBS News

Bankruptcy hearing on possible Crozer Health system sale in Delaware County, Pennsylvania postponed

There will be more waiting to see if a sales agreement comes together for the financially-troubled Crozer Health system. At a bankruptcy hearing Tuesday morning, an attorney for Prospect Medical Holdings, Crozer's owner, told the judge they couldn't discuss negotiations in public due to their sensitive nature.

The hearing was pushed back to late Thursday. At that time, the judge expects to hear about a sale of the Delaware County health system to what officials have described as a consortium of health care providers, which would keep Crozer Chester Medical Center and Taylor Hospital open.

Last week, lawyers for Prospect Medical, 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 to 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. 

View CBS News In
CBS News App Open
Chrome Safari Continue