Negotiations to secure the future of Crozer-Chester Medical Center and Taylor Hospital will resume on Thursday.

Talks aimed at addressing Prospect Medical Holdings’ urgent demand for million to maintain operations at Crozer-Chester Medical Center and Taylor Hospital are set to continue on Thursday. The discussions come in the wake of a looming deadline that places the future of these Delaware County facilities in jeopardy.

The Pennsylvania Attorney General’s Office has provided reassurance, indicating that a closure notice will not be issued immediately. This statement followed two critical meetings involving representatives from Prospect Medical, governmental officials, and stakeholders from the healthcare sector, indicating concerted efforts to find a solution.

During a recent bankruptcy hearing, a representative from Prospect Medical disclosed that, without the immediate infusion of million, the firm would initiate the closure of both hospitals at midnight Thursday. This alarming declaration underscores the precarious financial state of the for-profit California-based healthcare provider, which filed for bankruptcy in January. Although the company has previously secured a million infusion to cover payroll for approximately 3,200 employees, it has continued to assert that lacking additional funds, operational viability is at risk.

The million figure discussed in court is reportedly a preliminary requirement, with legal counsel for Prospect indicating that further financial support will be necessary to establish a sustainable, long-term operational framework. This becomes especially pertinent if any potential buyer emerges to take over the facilities.

Efforts led by Pennsylvania Governor Josh Shapiro and the state attorney general’s office have been directed towards restoring Crozer to nonprofit status—an ownership model it operated under prior to Prospect’s acquisition in 2016. However, persistent operational losses and substantial liabilities have made it increasingly difficult for existing nonprofit entities to consider taking on the system. Attempts to form a new nonprofit organization, supported by a coalition of local nonprofit healthcare systems, have not yielded successful outcomes thus far.

As discussions progress and a potential path forward remains uncertain, the situation at Crozer-Chester Medical Center and Taylor Hospital serves as a critical point of concern for the local healthcare landscape, underscoring the challenges of balancing financial sustainability with the imperative of providing essential medical services to the community. The developments will be closely monitored in the coming days as stakeholders seek to avert a closure that could have far-reaching implications for the providers and patients relying on these healthcare facilities.