Bankruptcy judge approves closure of Crozer hospitals in Delaware County.

Crozer Health, which operates hospitals in Delaware County, is set to cease accepting ambulance arrivals for medical emergencies at 8 a.m. on Wednesday, following the approval of closure proceedings by a bankruptcy court in Dallas. However, the emergency departments of Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park will still accommodate walk-in patients for an additional week.

This decision emerged from a nearly two-and-a-half-hour hearing, during which U.S. Bankruptcy Judge Stacey Jernigan acknowledged the complex challenges facing the health system’s for-profit owner, Prospect Medical Holdings. Despite the unfortunate outcome, the judge commented that there was a sound business justification for the closures.

While the current procedural plan is undergoing constant review by the Pennsylvania Department of Health, adjustments are being made to the strategy surrounding the emergency departments of both hospitals. Initial intentions to divert ambulances to alternate medical facilities have been modified to permit walk-in access until May 2, contingent upon ongoing discussions with state health officials.

Given the closures, there is mounting concern among local municipalities that rely on Crozer for emergency medical services. Emergency services currently affiliated with Crozer are expected to operate through May 2, although this timeline may extend if alternative providers cannot be secured promptly.

Further complicating matters, Crozer announced it will lay off 2,651 employees starting Friday, following its bankruptcy filing earlier in January. In addition to the layoffs, the health system seeks to sell outpatient facilities located in Broomall, Glen Mills, Havertown, and Media, with bids due this Friday. It is important to note that these outpatient facilities are not owned by Crozer.

The impending closure of these two hospitals is poised to significantly impact healthcare access for residents, particularly those in Chester and surrounding communities. This is of particular concern for trauma services and critical healthcare provisions for women and infants, including neonatal intensive care.

According to the testimony provided by Prospect’s chief restructuring officer, Paul Rundell, the estimated cost to shut down the system will range between million and million, with some funding expected to come from unpaid bills and potential sales from outpatient facilities. The urgency of this closure process has been underscored by emerging staffing challenges that pose risks to patient care.

Prospect Medical Holdings has a history of reducing services at Crozer, having previously closed two other hospitals during its ownership span of eight years. The financial liabilities associated with the health system played a significant role in discouraging other healthcare providers from participating in proposals to create an independent nonprofit to take over operations.

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