Foundation files petition to block Prospect from closing Pennsylvania hospital

A community foundation filed a petition Sept. 28 to block Prospect Medical Holdings from closing Delaware County Memorial Hospital, according to The Philadelphia Inquirer

Los Angeles-based Prospect Medical Holdings acquired Crozer-Keystone Health System in 2016. The Springfield, Pa.-based system, rebranded to Crozer Health in 2020, includes four hospitals. 

In mid-September, Crozer announced all services at its Delaware County Memorial Hospital in Drexel Hill, Pa., would be halted by November 20 under a plan to transition the hospital to an inpatient behavioral health center by spring 2023. The acute-care hospital will lay off 334 workers when it closes in November. 

On Sept. 28, the Foundation for Delaware County filed a petition in the Delaware County Court of Common Pleas requesting an emergency preliminary injunction on the closure of the acute-care hospital. The foundation represents the interests of the former nonprofit owner of Crozer-Keystone Health System.

The foundation alleges that a provision in Prospect's purchase agreement required it to obtain the foundation's consent before closing any hospitals and is in effect until July 1, 2026. 

Judge Barry C. Dozor scheduled an Oct. 7 hearing on the request for an emergency preliminary injunction.

In addition to the planned changes at Delaware County Memorial Hospital, Prospect Medical Holdings is also adjusting services at its Crozer Health's 25-bed Springfield (Pa.) Hospital, which will offer only outpatient services by 2023. 


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