The for-profit health system, which filed for Chapter 11 bankruptcy protection in January, told a U.S. bankruptcy judge that it only has the funds to keep the hospitals open through March 14, according to the report.
An exact date of closure remains up in the air as FTI Consulting — the receiver appointed for Upland, Pa.-based Crozer Health — manages deteriorating financial conditions on behalf of the system.
About 3,000 jobs are at risk by the closure of the two facilities, which would significantly reduce access to care in Delaware County, according to the Pennsylvania Association of Staff Nurses and Allied Professionals, a union representing more than 12,000 frontline nurses and healthcare workers.
“Our community health systems and the Delaware County Foundation must invest in our community’s well-being and continue working toward a solution that ensures these hospital facilities remain open and operational, PASNAP said in a March 6 statement shared with Becker’s. “The best path forward is a sale that preserves this vital institution, and negotiations must continue to secure a future where Crozer Health System serves the health and safety of Delaware County.”
In 2022, Prospect closed Crozer’s two other hospitals: Springfield Hospital and Delaware County Memorial Hospital in Drexel Hill, Pa. The closures included multiple rounds of layoffs.
Pennsylvania officials hoped to transfer Crozer to a nonprofit backed by local health systems, but heavy liabilities deterred interest.
The next bankruptcy hearing will take place March 11 in Dallas, either as a status update or a closure hearing, according to the Inquirer. Prospect expects to file its closure motion March 13.
Delaware County has been preparing for months, learning from the abrupt closure of Delaware County Memorial. The county is coordinating with hospitals, emergency medical services and other stakeholders to be ready for a potential Crozer shutdown.
“It is infuriating to hear that Prospect has failed to keep their promises yet again to the residents of Delaware County, now that they’re done lining their own pockets at the expense of our communities,” Delaware County Council Chair Monica Taylor, PhD, said in a March 6 news release. “Our county government has spent months hard at work to prepare for the possibility that these hospitals would be closed. We remain committed to an orderly, calm and comprehensive process to helping ensure patients are transferred to other facilities that can provide the care they need.”
Neither Prospect nor Crozer responded to Becker’s request for comment.
Editor’s note: This is a developing story and will be updated as more information becomes available.
