Crozer Health deal to save Delaware County hospitals in jeopardy, sources say
Plans to save Crozer Health and keep two Delaware County hospitals open are in jeopardy, sources say.
In an emergency bankruptcy court hearing in Dallas at noon Thursday, lawyers for Prospect Medical Holdings and the Pennsylvania attorney general told the court the deal to find a long-term solution had "blown up," and they say Penn Medicine, the health system in negotiations with other partners to come in and rescue the system, had walked away from the table.
This comes after a board member for the Foundation for Delaware County sued for an emergency injunction to effectively block the use of foundation funds to keep the Crozer system running. A judge granted the preliminary injunction Thursday morning.
Sources say this move could jeopardize a long-term deal to keep the health system operating.
An attorney who filed the suit tells CBS News Philadelphia the foundation at a private meeting was "coerced" into handing over $7 million, which attorneys said funded an additional payroll of hospital staff at Crozer-Chester Medical Center and Taylor Hospital.
The bankruptcy court judge has now ordered lawyers to a face-to-face meeting this weekend in Harrisburg to fix the mess.
Pennsylvania Attorney General Dave Sunday said in an email to CBS News Philadelphia:
"I am grateful the bankruptcy court recognizes the urgency of this matter and has ordered all parties back to the table to solidify a path forward. This senseless act of gamesmanship from the Foundation for Delaware County is yet another obstacle to overcome in efforts to keep the Crozer system open. However, we remain committed to helping the people and families who depend on the system and the hard-working professionals who serve the community."
A spokesperson for Penn Medicine, which was part of the conversations about Crozer's future, said: "For more than a year as Prospect Health's financial situation has deteriorated, Penn Medicine has advocated to form a consortium of non-profit hospitals, foundations, and county and state officials to ensure continued health care for patients in southern Delaware County."
"This is crucial work which can only be accomplished through a collective plan with financial and operational support from numerous partners," the spokesperson said. "We remain committed to working toward potential solutions in partnership with others."
This is a developing story and will be updated as more information comes into the newsroom.
