Crozer Health in Delaware County to close, leaving patients and employees in limbo

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For-profit parent company Prospect Medical Holdings moved Monday to shutter Delaware County’s largest hospital system.

From Delco to Chesco and Montco to Bucks, what about life in Philly’s suburbs do you want WHYY News to cover? Let us know! Crozer Health, Delaware County’s largest hospital system, will close its doors within 30 days — creating an emergency health care desert in Philadelphia’s densely populated suburbs . The death rattle of Crozer Health comes after Pennsylvania, Delaware County, Penn Medicine and the Foundation for Delaware County pumped a total of $46 million over recent months to keep it functioning amid bankruptcy proceedings and sale negotiations to transition the system to a new owner. California-based parent company Prospect Medical Holdings pulled the plug Monday, leaving patients and staff in limbo about future care and jobs.

“Today, Prospect Medical Holdings made the extremely difficult decision to begin winding down operations across our Crozer Health facilities,” Prospect Medical Holdings officials said in a statement. “Unfortunately, we were unable to reach a viable alternative.” While major hospital operations at Crozer-Chester Medical Center and Taylor Hospital will close, Prospect Medical said ambulatory surgery and imaging centers in Brinton Lake, Broomall, Haverford and Media will remain open.



“At this time, the focus at Crozer Health remains on seamlessly transitioning patients to other health facilities so that they can continue to receive the critical, uninterrupted care they require,” company leaders stated. “And to support Crozer Health team members as they seek to identify other employment opportunities.” FTI Consulting, which was tasked with shepherding the distressed health system’s finances , issued a statement thanking employees, patients and parties who offered solutions.

“As Court-appointed receiver, we are disappointed an alternative resolution and sale could not be reached,” the receivership said. Crozer began transitioning operations in an attempt to sustain itself in recent weeks in accordance with FTI’s service line transition plan. Main Line Health raised its hand to absorb Crozer’s OB-GYN services .

Taylor moved to axe home care and hospice units as early as June . “The ‘FTI plan’ was one of recovery and exploration of a possible sale, not closure,” the receivership said. Prospect will begin closing Crozer Health if Pa.

does not provide $9 million If another cash infusion doesn’t arrive by Wednesday, the hospital system could begin diverting ambulances and patients to other facilities as soon as Thursday morning. 2 weeks ago ‘Disappointed’ Pa. officials seek ‘to hold Prospect accountable’ Representatives from the Pennsylvania Office of Attorney General were heavily involved in sale negotiations.

In a statement, spokesperson Brett Hambright said the office was “deeply disappointed” by the closure news. In the end, office leaders said the “damage inflicted” by Prospect’s former owner, private-equity firm Leonard Green & Partners, “who prioritized their own wealth over the well-being of a community, was too much to overcome.” The attorney general’s office pledged to continue working through the bankruptcy process to recoup money owed to the Commonwealth “to the greatest extent possible in order to hold Prospect accountable for actions that caused this closure.

“ Crozer is integral to shaping the county’s history and economy. The hospital system employs approximately 3,000 people. State Sen.

Tim Kearney, whose district includes Taylor, said he’s “furious.” “Delaware County legislators, Governor Shapiro’s office, and The Office of the Attorney General have been working night and day for months to stop the hemorrhaging Prospect’s dealings created while finding bridge funding to keep Crozer open under new ownership,” Kearney said. This is a developing story.

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