Prospect plans to close Crozer hospitals by Thursday unless they receive million in funding.
Prospect Medical Holdings, the bankrupt owner of Crozer Health, is facing a critical juncture as it seeks a million financial boost by Wednesday afternoon to keep two Delaware County hospitals operational for an additional two weeks. During a recent bankruptcy hearing, legal representation for Prospect underscored the urgency of the situation, warning that failure to secure the funds would necessitate the initiation of a shutdown protocol. This would result in Crozer hospitals ceasing new patient admissions in their emergency departments starting Thursday morning.
Since filing for bankruptcy in January, Prospect has repeatedly signaled its precarious position, indicating that the hospitals serve a region in Delaware County with limited medical alternatives, particularly affecting low-income residents in Chester. With a workforce of approximately 3,200 employees, the potential closure of the Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park raises alarm over the accessibility of medical services in the area.
Prospect’s legal team conveyed that discussions regarding the sale of these facilities to a proposed nonprofit organization backed by local health systems are unlikely to yield any agreement within the week. If the necessary funding is acquired, negotiations will shift towards finding a more sustainable long-term solution, although this would demand an even more substantial financial commitment.
Presently, Crozer Health has million at its disposal, but it faces imminent payroll obligations exceeding million. A team from FTI Consulting has been overseeing Crozer’s management since February and is working on a plan to reduce the system’s annual losses from 0 million down to a range of million to million.
A follow-up hearing has been scheduled for Thursday in Dallas to review Prospect’s motion concerning the potential closure and to provide updates on ongoing negotiations. The court proceedings have revealed some challenges, as U.S. Bankruptcy Judge Stacey Jernigan noted the lack of transparency during discussions regarding the sale of the facilities, a situation further complicated by the involvement of a proposed health systems consortium.
Local officials and health advocates have expressed concerns over the long-term viability of Crozer Health, voicing the need for more confidence in any potential buyout to avoid perpetuating the cycle of financial instability that has plagued the system. Amid ongoing assessments and negotiations, the future of Crozer hospitals remains uncertain, underscoring the critical need for immediate financial intervention.
The outcome of the upcoming hearing could significantly influence the healthcare landscape in Delaware County, impacting not only the hospitals but also the vulnerable populations they serve. Without decisive action, there is a looming threat of diminished healthcare access in an area already challenged by resource constraints. Media News Source.
