Crozer Health will remain open beyond Friday — the date its owner, Prospect Medical Holdings, had targeted for its closure — due to last-minute funding from the Foundation for Delaware County.
The foundation's commitment came after a federal bankruptcy court judge in Texas called an emergency meeting Sunday between Prospect Medical Holdings, Crozer CEO Anthony Esposito, Pennsylvania Attorney General Dave Sunday, Delaware County leaders, FTI Consulting and the foundation. Negotiations lasted more than six hours, Sunday said.
MORE: Crozer Health could shutter soon as owner files motion for 'expedited closure'
Sunday announced news of the foundation's commitment late Sunday night, but did not disclose the amount of the funding or how long it will keep the health system running.
FTI Consulting was appointed to oversee management of the health system — which includes Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park — for the near future. More details on a potential long-term solution are expected to be released in the coming weeks.
The Foundation for Delaware County, based in Media, was formed with the nonprofit assets from Prospect Medical Holdings' purchase of the former Crozer-Keystone Health System in 2016. The foundation received $55 million from the sale to boost the health of Delco residents.
"We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider," Foundation President Frances Sheehan said in a statement. "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."
On Thursday, Prospect Medical Holdings filed a motion for the "expedited closure" of Crozer, saying that staying open past Friday would jeopardize its other holdings, which include health systems in Connecticut, Rhode Island and California, where the company is based. Prospect filed for Chapter 11 bankruptcy Jan. 11 in Texas.
Crozer's hospitals also include Springfield Hospital, which is only being used for outpatient care, and Delaware County Memorial Hospital, which has been closed since 2022. The health systems also includes Media Medical Plaza, Crozer Health at Broomall, the Surgery Center at Haverford, Crozer Medical Plaza at Brinton Lake and the Community Campus in Chester.
Sunday said his office recently filed a civil lawsuit against Prospect Medical Holdings, alleging it violated its 2016 purchase agreement. The lawsuit seeks payment for outstanding health system costs and court-appointed management to aid it.
"The future of Crozer Health has dominated my first month in office," Sunday said. "And it deserves that full attention, as this system is an asset to the communities it serves and an economic driver for Delaware County."
