Upland, Pa.-based Crozer Health has secured $6 million in funding to keep its two hospitals temporarily operational, but will transition out services like OB-GYN to avoid a shutdown, NBC Philadelphia reported April 10.
The news comes after a lawyer for its parent company, Los Angeles-based Prospect Medical Holdings, said an additional $9 million was needed by 4 p.m. April 9 to keep the system open. The funding will go to FTI Consulting, Crozer’s state-backed receiver for the system, while Prospect works to finalize an asset purchase agreement to put Crozer under new and permanent management, a spokesperson for Pennsylvania Attorney General Dave Sunday confirmed with Becker’s.
“Keeping frontline staff in the buildings and on the job is integral to that concern,” the Pennsylvania Association of Staff Nurses and Allied Professionals said in an April 9 statement shared with Becker’s. “The doors to the health system must not just stay open – the services the health system provides must persist and the staff must be there to serve the citizens of Delaware County when they are at their most vulnerable.”
PASNAP represents around 1,000 frontline workers at Crozer Health, the statement said.
On March 9, a deal was reached to keep Crozer’s two hospitals, Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park, Pa., open “for the immediate future.” The deal came after Prospect shared plans to close the hospitals in early March, which would have resulted in the loss of around 3,000 jobs.
Prospect sought Chapter 11 protection in January and has been trying to offload 10 of its 16 hospitals. Crozer’s other two hospitals, Springfield (Pa.) Hospital and Delaware County Memorial Hospital in Drexel Hill, Pa., closed in 2022.
“Crozer Health, the Pennsylvania Office of Attorney General, Prospect Medical Holdings and FTI Consulting … are committed to sustaining operations and working toward a long-term solution that will serve the best interest of Delaware County,” a spokesperson for Crozer said in an April 8 statement shared with Becker’s. “All Crozer Health facilities remain open and continue to serve patients with the highest quality of care.”
Becker’s has reached out to Crozer Health and Prospect Medical Holdings for more information on the service transitions and will update this story should more information become available.
