DV Journal

(From a press release) 

Attorney General Dave Sunday and The Foundation for Delaware County announce that, after an 11th hour meeting Sunday in Harrisburg, an agreement has been reached that will keep Crozer Health open for the immediate future while permanent restructuring of the system is solidified.

As the system faced imminent closure, a Texas federal bankruptcy court judge convened a meeting between all parties on Sunday, where  Sunday emphasized the urgency to reach a deal and maintain accessible healthcare for southeastern Pennsylvanians.

Sunday and his senior staff attended the meeting, along with board members and the president of the Foundation for Delaware County, which was formed with the nonprofit assets from the purchase of the Crozer-Keystone Health system to Prospect Medical Holdings in 2016.

“I am pleased that the parties focused on how to move forward on behalf of Pennsylvanians, instead of how we got here, and worked to an agreement after more than six hours of negotiations,” Sunday said. “I thank all parties for their good faith negotiations and sacrifices made to make this happen. This work was done on behalf of the thousands of people and families who depend on Crozer Health System for essential services — and the many hardworking professionals who provide that care.

”My office will remain engaged in this process as we work to find a long-term solution.”

The Foundation for Delaware County committed essential funding that remedies immediate shortfalls that would have led to closure of the system, likely in coming days.

The Foundation’s President Frances Sheehan said, “We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider. 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.”

Also at the meeting Sunday at the Office of Attorney General’s Harrisburg headquarters were Delaware County government leaders (virtually), and representatives from FTI Consulting, the court-appointed receiver who will oversee management of the hospital for the immediate future, as well as Crozer CEO Anthony Esposito, and representatives from Prospect Medical Holdings.

The Office of Attorney General has been advocating for Pennsylvanians for years, since Prospect’s mismanagement — and eventual bankruptcy — led to closures of facilities and cuts in services. Most recently, the Office of Attorney General filed a civil lawsuit against Prospect and partners, alleging Prospect violated a 2016 purchase agreement and seeking payment of outstanding costs and court-appointment of new management that would rescue the failing system.

”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.”

More details  will be released in coming weeks as a permanent solution is pursued.

(From a press release)

Monday Delaware County Council, joined by members of the Delaware County delegation and the broader Delaware County Team, held a press conference to address the abrupt bankruptcy announcement by Prospect Medical Holdings, the parent company of Crozer Health.

Officials acknowledged that while Crozer Chester Medical Center and Taylor Hospital remain fully operational for now, with no closures or reductions in services currently announced, the situation remains precarious. Prospect Medical Holdings’ track record of financial mismanagement and service reductions has left the community on edge, and County leaders are preparing for the possibility that additional closures may be forthcoming. Although Prospect has committed to continuing hospital operations, paying staff, and maintaining vendor payments during the Chapter 11 bankruptcy process, officials emphasized that the company’s past actions warrant skepticism and close scrutiny.

“This bankruptcy places our community’s most vulnerable—patients, families, and frontline healthcare workers—in an increasingly precarious position,” said Delaware County Council Chair Monica Taylor, PhD. “It is the unfortunate culmination of years of mismanagement, financial exploitation, and an alarming disregard for public health and the well-being of our residents. However, this also presents an opportunity to take Crozer back from Prospect and transfer it into responsible hands to stabilize the system for patients and workers.”

Officials emphasized that Crozer’s hospitals, EMS operations, and mental health services are open and will remain open during the bankruptcy process. Employees will continue to be paid, and Prospect is cooperating with the Pennsylvania Attorney General and Governor Josh Shapiro’s office to divest Crozer Health and transfer it to a responsible nonprofit healthcare organization.

“County leadership is working closely with state and local partners to ensure that there is no interruption to emergency and behavioral health services,” said Taylor. “Our newly formed Delaware County Health Department, led by Director Lora Werner, is here to support residents with questions and provide updates during this uncertain time.”

“Our goal is to support our county residents with the information they need to navigate this challenging time,” said Werner. “The Health Department is here to provide updates and to help residents navigate available healthcare resources in the area.”

Residents may call the Delaware County Health Department Wellness Line at (484) 276-2100 for updates regarding the bankruptcy as they become available and for assistance navigating available healthcare resources in the area.

The impact of Prospect’s ownership extends beyond the hospital walls. Prospect has not only neglected its obligations to patients and staff but has also imposed a significant financial burden on the County and its municipalities by failing to pay over $13 million in real estate taxes. Taxing authorities, including the County of Delaware, Springfield Township, Springfield School District, Upland Borough, Ridley School District, and Upper Darby School District, have been forced to shoulder this gap—resources that should have been reinvested in local communities rather than subsidizing the failures of a for-profit operator.

“This is yet another example of how for-profit healthcare prioritizes shareholder dividends over community well-being,” said Delaware County Council Member Christine Reuther. “The financial impact of Prospect’s failure to pay taxes has rippled through our schools, our municipalities, and our County. These funds could have been used to improve education, public safety, and community services, but instead, they’ve been diverted to offset the failures of a corporation that has shown little regard for its obligations.”

Prospect filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court in northern Texas. Chapter 11 allows a company to continue operating while restructuring its debt. This includes addressing significant financial obligations such as their $150 million mortgage to Medical Properties Trust, obligations to the Crozer pension fund, and other liabilities.

The Pennsylvania Attorney General’s Office is representing Delaware County communities in the bankruptcy case and remains committed to removing Prospect from ownership and ensuring the system is transitioned to responsible leadership.

Members of the Delaware County delegation are actively working with Gov. Shapiro’s office to determine a long-term solution for Crozer Health. The delegation is also reintroducing legislation to provide state oversight of hospital sales and major financial transactions, aiming to prevent such crises in the future.

“Hospitals are closing or declaring bankruptcy across the state,” said Taylor. “This is a statewide issue, and we are working with bipartisan leaders to address it head-on.”

Delaware County has convened a working group of healthcare providers, officials, and community partners to prepare contingency plans in the event of any disruption to Crozer Health’s operations. Officials emphasized that the creation of the Delaware County Health Department and partnering with the Delaware County Department of Emergency Services and Regional Emergency Medical Services has been instrumental in responding to this crisis.

Taylor also expressed deep appreciation for healthcare workers at Crozer Chester Medical Center and Taylor Hospital, calling them “the rock of this community,” adding “Despite layoffs, underfunding, and worsening conditions, they have continued to provide care with dedication and professionalism. These healthcare heroes deserve not only our gratitude but meaningful action to support their work.”

Delaware County leaders reaffirmed their commitment to ensuring that healthcare services remain accessible and reliable for all residents. “This is our home, and together, we will rise to meet these challenges,” said Dr. Taylor. “We will not rest until we have rebuilt a system that puts people first.”

For more information, residents are encouraged to visit Delaware County’s website or call the Delaware County Health Department Wellness Line at (484) 276-2100.

Crozer Health, a health system serving Pennsylvania’s Delaware County and region, announced various changes Wednesday, including that Delaware County Memorial Hospital will switch to a behavioral health institution by spring 2023.

Other hospitals owned by the company will also be modified to “provide healthcare access and services based on post-pandemic operational realities and community needs,” Crozer said in a press release. “Crozer Health’s new service offerings will align with patient-centric care, focused on essential services, and expanded behavioral health care access and services.”

“Members of Delaware County Council met with senior leaders of Crozer Health on September 20, 2022, to learn of their reorganizational plan,” said Adrienne Marofsky, a spokeswoman for Delaware County.  “The plan includes elements that are responsive to the needs of County residents. However, there is a range of unanswered questions, including what role Crozer Health’s for-profit corporate parent, Prospect Medical Holdings, will play.  While this plan aims to stabilize the system, Council is concerned that the proposed plan may limit access to health care in the eastern Delaware County communities,” she said.

“The health and safety of residents is a main priority to council, and the county will continue its focus on ensuring that a wide range of health services and options remain available to Delaware County residents. All residents deserve access to quality healthcare,” she said.

The plan will require approval by the Department of Health and other agencies before implementation.

The plan highlights include:  Crozer Health’s Springfield campus will begin serving as an outpatient facility by the end of 2022. This will provide the community with a variety of outpatient services. These will include urgent care, advanced surgical care, and outpatient services ranging from rehabilitation to diagnostic imaging. The campus will continue hosting primary and specialty care physician group practices.

At Delaware County Memorial Hospital campus in Drexel Hill more than 100 patient beds will be dedicated to behavioral health services, including a crisis care unit, inpatient acute psychiatric care, acute detox/rehabilitation, and geropsychiatry/senior behavioral health. All other services, including the former Emergency Department, will be discontinued within 60 days to begin renovations for this transformation.

“This opening of behavioral health beds and services will aid in the behavioral health crisis in the county and the region,” the release said

Crozer-Chester Medical Center campus in Upland will continue as the system’s academic and tertiary center for advanced clinical care.

“We are committed to caring for those facing acute medical care needs in a variety of areas through our Level II Trauma Center, Nathan Speare Regional Burn Treatment Center, Neurosciences Institute, women’s health/obstetrics services, and Level III neonatal intensive care,” the release said. “Here, our highly qualified doctors, nurses, and care teams provide the highest quality care for a wide range of acute care medical and surgical conditions. As a teaching hospital and regional medical campus for Drexel University College of Medicine, our physicians train the next generation of healthcare providers through our residency programs, fellowships, and allied health programs.

“The campus also hosts an ambulatory care pavilion and professional office building with primary care and specialty care group practices,” the release said.

Taylor Hospital campus in Ridley Park will continue to serve the community focusing on excellent patient experience and outcomes. The campus has a busy emergency department, robust inpatient rehabilitation unit and adult inpatient medical and surgical services, and intensive care.

Crozer Health Medical Group, the employed medical group of Crozer Health, will continue to focus on population health initiatives to improve the health of patients and the community. The medical group will coordinate an aggressive recruitment effort to align with these essential services and population health-based planning and implementation including additional primary care and behavioral health providers and staff, the release said.

“What we’ve done is assess what those needs are in partnership with physicians, the community, and local leaders,” said Crozer Health CEO Anthony Esposito. “Through this engagement, we determined that access to community-based, high-quality, safe, and effective services are key to being responsive to the community while also addressing the changing nature of healthcare today.”

“We’ve looked at how we can provide better access to care for our patients, especially the most vulnerable, while not ignoring the pressures hospitals are facing in this post-pandemic world. We will refine alternate care models and technology to enhance this access, “said Dina Capalongo, DO, MBA, Crozer Health’s Chief Medical Officer.

Nathan Okechukwu, MD, Crozer Health’s President of Clinical Operations and Chair, Department of Medicine, added: “Our Crozer Health hospitals, behavioral health facilities, and outpatient campus services will remain accessible when and where it counts with a focus to timely and highly reliable care.”

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