Efforts to keep Upland, Pa.-based Crozer Health’s two hospitals open continue as system leaders race to secure critical funding.
Here’s the latest:
- Crozer Health has secured $6 million in funding to temporarily keep its two hospitals operational. However, the system will begin phasing out certain services, such as OB-GYN care, to prevent a complete shutdown.
- The hospital closures were delayed after a lawyer for Los Angeles-based Prospect Medical Holdings, Crozer’s parent company, stated that an additional $9 million was needed by 4 p.m. on April 9 to maintain operations.
- Following a series of last-minute meetings, a spokesperson for Pennsylvania Attorney General Dave Sunday reported its office had received assurances that no formal closure notice would be issued on April 9.
- In a statement shared with Becker’s, the Pennsylvania Association of Staff Nurses and Allied Professionals warned of the serious consequences of a shutdown: “If Crozer Health shuts its doors, its 190,000-member patient community would be devastated – literally locked out of easily accessible critical and primary care. That means no pediatric care, no colonoscopies and no emergent care for deathly ill neighbors and family members.”
- Prospect filed for Chapter 11 protection in January and has since been seeking buyers for 10 of its 16 hospitals. Crozer’s other two hospitals, Springfield (Pa.) Hospital and Delaware County Memorial Hospital in Drexel Hill, Pa., closed in 2022.
- In March, the University of Pennsylvania Health System denied rumors that it was in talks to acquire Crozer. However, a spokesperson told Becker’s that the system is participating in broader efforts to preserve healthcare access in the region.
- That public statement contradicted testimony presented in court by Prospect’s legal representatives. During a March 24 bankruptcy hearing, attorneys suggested acquisition discussions with Penn Medicine were ongoing, according to CBS News Philadelphia.
Earlier in March, Crozer narrowly avoided closure when emergency funding was secured from the Foundation for Delaware County. The last-minute financial rescue followed a March 9 emergency meeting arranged by a federal bankruptcy court.
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