CHESTER, Pa. (KYW Newsradio) — Two Crozer Health hospitals in Delaware County that were slated to close this week will stay open, at least for now, after an agreement was reached to provide short-term funding for the health system.
In a joint announcement on Sunday, Pennsylvania Attorney General Dave Sunday and the Foundation for Delaware County said the hospitals would remain open “for the immediate future while permanent restructuring of the system is solidified.”
The Foundation for Delaware County — a nonprofit that was established in 2016 when Prospect Medical Holdings purchased Crozer-Keystone Health — will provide an undisclosed amount of money to keep Crozer Chester Medical Center and Taylor Hospital running.
Prospect Medical Holdings, which filed for bankruptcy in January, announced last week that it only had enough funds to operate the facilities through March 14.
Residents, local officials and Crozer employees were concerned about the impact the closures would have on the community.
The meeting Sunday afternoon was convened by a Texas bankruptcy judge. The attorney general and his staff were joined by the foundation’s board members and president, Delaware County officials, representatives with Crozer and Prospect, and FTI Consulting, the receiver appointed by the court to oversee hospital management.
“I thank all parties for their good faith negotiations and sacrifices made to make this happen,” Sunday said in a statement. “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.”
“We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider,” added Foundation for Delaware County President Frances Sheehan. “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.”
Officials did not say how long the hospitals would be able to stay open under this agreement and what kind of long-term solutions could be on the table.