The tortured saga of the survival of Crozer Chester and Taylor hospitals remained unresolved Thursday night.
Attorneys for the debtors of hospital owner Prospect Medical Holdings said they were able to get $6 million in funding to keep the facilities open another six to 10 days.
“I think it’s good news, bad news,” said William Curtin, the attorney representing Prospect’s debtors. “We’re not closing, but we also don’t have a long-term solution for Crozer.”
Curtin said the hospitals would receive $5 million from Penn Medicine as a donation. Penn would also buy some office equipment and assume some building leases. Additionally, Delaware County would donate $1 million as an advance for behavioral health services.
Federal bankruptcy Judge Stacey Jernigan was pleased to hear about the cash lifeline.
“Thank you to the human beings that were behind at least getting that $6 million in the works here,” she said.
No money will be coming from the Foundation for Delaware County (Delco Foundation) or the state of Pennsylvania. It’s possible the hospitals will receive more state money if an Asset Purchase Agreement (APA) is reached.
Chief Deputy Attorney General Melissa Van Eck stressed the Attorney General’s Office was doing all it could to find a buyer for the hospitals. That includes working with Delaware County and other stakeholders like Penn Medicine.
“The parties work day and night to find a resolution, and hopefully, we will get to one,” Van Eck declared.
In the interim, Prospect will start making gradual changes to hospital services, working in conjunction with the patient care ombudsman (PCO). Certain assets that had already been approved by federal bankruptcy Judge Stacey Jernigan will be sold off.
Curtin portrayed the policy shift as a way to help come up with a long-term APA or make any future closure “less dramatic” for patients and workers. He said it allows critical services to remain in Delaware County and preserves as many jobs as possible.
One service that will wind down is Chester Crozer’s OBGYN services. Additional cuts will happen in the future. The hospital system will help patients, doctors, and nurses find new facilities.
Curtin stressed the service changes would have happened anyway if an APA had been reached. “It’s much less of a hatchet than it would be if we were just closing and having to do this abruptly,” he said. “It’s far from the worst choice.”
Jernigan was glad to hear there was no abrupt shutdown coming, but disappointed there wasn’t a long term solution.
“We’re all keeping hope alive that we do get an asset purchase agreement during these days ahead, but we at least have a game plan,” she said.
