Penn Medicine acquires Crozer’s Broomall and Glen Mills offices for million, discontinuing ob/gyn services at Crozer-Chester Medical Center.

The University of Pennsylvania Health System has reached an agreement to assume the leases for medical offices operated by Crozer Health in Broomall and Glen Mills as part of a million deal. This transaction, confirmed in court proceedings, is intended to delay the imminent closure of Crozer’s hospitals for approximately one week. This brief reprieve was communicated to a presiding judge by a representative for Prospect Medical Holdings, the bankrupt entity that owns Crozer Health.

As part of the agreement, the maternity care services currently provided at Crozer-Chester Medical Center in Upland will be handed over to an unnamed healthcare provider. Although these measures provide temporary relief, they are not definitive resolutions. Stakeholders have been granted a maximum of ten additional days to seek a long-term plan that could stabilize operations at Crozer Health, which also includes Taylor Hospital in Ridley Park.

In conjunction with the University of Pennsylvania’s financial support, Delaware County has pledged an advanced payment of million for behavioral health services, contributing to a combined total of million. This amount, however, falls short of the million Prospect had previously sought to avert closure.

Further developments suggest that Prospect Medical Holdings will begin implementing a restructuring strategy devised by FTI Consulting Inc., which has managed the organization’s operations since February. This plan will involve transitioning certain service lines away from Crozer, which have been identified as financially unsustainable within its current framework.

The first significant step of this restructuring involves relocating labor and delivery services from Crozer-Chester. This transition is crucial for minimizing the impact of potential future closures on the healthcare system and its stakeholders. Geographic considerations are a priority in these operational shifts, with Main Line Health’s Riddle Hospital potentially absorbing these services due to its nearby location and existing capacity.

The restructuring also raises concerns among employees, many of whom face uncertainty about their job security amid this transition. State attorney general representatives assured that while staffing may shift, employees would remain in their roles, albeit potentially under new management.

The deal with the University of Pennsylvania is still pending finalization. The million investment will largely function as a donation, though part of it will be allocated for necessary furniture, fixtures, and equipment. The University has indicated its commitment to maintaining operations at these facilities while aiming to enhance services for the local community.

The outpatient facilities in question are viewed as valuable assets compared to Crozer-Chester, which heavily relies on Medicaid funding—a source that provides lower reimbursement rates compared to private insurance. As discussions continue regarding the future of Crozer Health, no definitive timeline has been established for follow-up hearings.

The overall situation remains fluid, as stakeholders navigate the complex challenges of healthcare delivery amidst financial constraints and the urgent need for reform.