Crozer Health To Remain Open After '11th Hour' Meeting, Officials Say

DELAWARE COUNTY, PA — Crozer Medical Health System will remain open after its closure was reported last week thanks to "an 11th hour meeting" that occurred this weekend, according to state officials.

Pennsylvania Attorney General Dave Sunday and The Foundation for Delaware County Sunday announced 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," he said.

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.

"We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider," Foundation for Delaware County President Frances Sheehan said. "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, 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 are expected to be released in the coming weeks as a permanent solution is pursued.