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Prospect Medical Holdings warns of possible shutdown of Crozer Health system in Pennsylvania

Lawyers for Prospect Medical Holdings warned before a federal judge in Texas Thursday about the possible closure of the entire Crozer Health system in Pennsylvania.

The judge did not issue a ruling. Instead, she called for all parties to meet next week in hopes of keeping Crozer-Chester Medical Center, Taylor Hospital and other outpatient facilities and doctors' offices open. The meeting could happen as early as Monday. Another hearing is scheduled for Tuesday in federal court.

Prospect Medical Holdings claims there's only enough money to keep the hospitals open through March 14.

The distressing development comes as Pennsylvania, Delaware County and Chester City officials have been fighting to keep the health system open. Last month, the system was removed from its parent company, Prospect Medical Holdings, and placed into receivership. Delaware County and the state provided $20 million at that time to keep the system running. Most of that money is gone.

Topping the list of concerns right now for multiple officials is patient care going forward for people in Chester City and southern Delaware County.

"When you call 911, we'll be there to help you, we just don't know where we are going to take you," one source told CBS News Philadelphia.

Officials have been working to locate a new owner. Those efforts, according to sources, have failed.

County sources say the health system employs nearly 3,000 people. Sources say the hospital is in danger of missing payroll.

The hospital also sits entirely in Upland borough, and a closure would create a huge loss in income tax revenue for the community.

Prospect Medical Holdings filed for bankruptcy on Jan. 11. The for-profit company had been sued by the Pennsylvania attorney general in October, alleging financial mismanagement and negligence.

"Bankruptcy in Texas, huh? Filed in Texas for a hospital that sits here in the City of Chester," Mayor Stefan Roots said. "I just left the senior center here in the City of Chester, and I gave them the news that it doesn't look good, that their hospital may be going away. They're still in disbelief. They're still in denial. It's a city in denial. They can't believe this hospital could be closing ever, let alone in the next seven days."

Emails sent to a spokesperson for Crozer seeking comment did not receive an immediate reply.

In a statement, the Delaware County Legislative Delegation said shutting down the Crozer Health system would be a "brazen attack on health care access" in the region.

"This isn't just about stripping away 400 hospital beds, denying 25,000 hospital admissions and abandoning over 75,000 emergency room patients in Delaware County — it's a full-blown crisis that endangers emergency services along the I-95 corridor, guts maternal healthcare, and piles even more pressure onto already overburdened hospitals," the delegation's statement said.

Peggy Malone, president of the nurses' union at Crozer, said she was outraged by Thursday's turn of events.

"They will not close these doors. This is our hospital. These are our people. Aren't you cold standing here? Because how many patients live on the streets? How many of our patients come to our ER for food and for clothing?" Malone said. "I have two bags for colleagues because I have a couple of patients who are over in the inpatient psychiatric unit who don't have clothes. They don't have shoes. And you think they can go 30 minutes to [Mercy Fitzgerald]? Twenty minutes to Riddle? Forty minutes to Penn? They can't go anywhere."

The Crozer union is an affiliate of the Pennsylvania Association of Staff Nurses and Allied Professionals, which also shared a statement urging the system to stay open. 

"With already strained healthcare resources in the region, the loss of Crozer Health facilities would exacerbate existing challenges, putting lives at risk and further burdening nearby hospitals and emergency services," the statement says in part.

Pennsylvania Attorney General Dave Sunday said in a statement that his office "remains fully engaged in doing what it takes to save this health care system."

"The closing of Crozer Health System is an avoidable travesty. I am grateful the presiding judge also sees the urgency to explore all options and has issued an order convening all parties for a meeting Sunday afternoon," Sunday said in a statement.  

What happens if Crozer-Chester Medical Center, Taylor Hospital close?

A big question with the possible closing of Crozer-Chester Medical Center and Taylor Hospital in Delaware County, Pennsylvania, is what happens to the thousands of patients who depend on them. Nearby hospitals say they will help coordinate care, but there are still a lot of questions and no specific answers.

One thing is for sure, there's a lot of frustration and anger, including Pennsylvania Gov. Josh Shapiro.

"I'm annoyed by the presence of private equity in our health care space," Shapiro said.

Shapiro is angry about the impending closing of the Crozer Health system, and so is Dr. Monica Taylor, the chair of the Delaware County Council.

"We are disappointed, angry," Taylor said. "We saw this coming. When you have for-profit that owns a hospital, they're always thinking profits over people."

Taylor says thousands of patients will be impacted by the closing of the county's only trauma facility.

What happens if Crozer-Chester Medical Center, Taylor Hospital close? 02:26

"We don't have specifics," Taylor said. "I will say this does not leave a safe environment for a community. This is a safety-net hospital and a community that will now have a lack of access to care."

Mercy Fitzgerald Hospital will be one of two remaining hospitals in the county.

In a statement, hospital leadership said it's "prepared to handle an influx of inpatients and emergency department visits, and with the support and collaboration of local government [we] can ensure alignment of our resources and capacity."

Shapiro pointed to other larger hospital systems, Main Line Health and Penn Medicine, and said they should be doing 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."

Main Line Health has two hospitals, Riddle and Lankenau, that are close to Crozer.

A statement from Main Line Health says it's been preparing for the closing of Crozer and has "been working with regional health systems, as well as the govenor's office, Pennsylvania Department of Health and Pennsylvania Office of Attorney General to identify potential solutions to ensure uninterrupted health care coverage for the Delaware County community."

In a statement, Penn Medicine said, "Penn Medicine's doors are always open to patients in need. Along with our health care colleagues across the region, we will work to ensure smooth transitions in care for all patients who may be impacted by this potential closure."

For patients and families worried about care, Delaware County has set up a website for answers. There is also a wellness line. You can call 484-276-2100.

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