Attorney General Dave Sunday and The Foundation for Delaware County have announced an agreement to keep Crozer Health operational while pursuing long-term restructuring. This decision follows a critical meeting held in Harrisburg, prompted by the threat of imminent closure.
A Texas federal bankruptcy court judge facilitated the meeting, where Attorney General Sunday stressed the importance of maintaining healthcare access for southeastern Pennsylvanians. "I am pleased that the parties focused on how to move forward on behalf of Pennsylvanians," said Attorney General Sunday, acknowledging over six hours of negotiations. He expressed gratitude for the efforts made to reach this agreement, emphasizing its significance for those reliant on Crozer Health System.
The Foundation for Delaware County has provided crucial funding to address immediate financial gaps that could have led to closure. Frances Sheehan, President of the Foundation, stated: “We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider.”
Participants in the meeting included Delaware County government leaders (virtually), FTI Consulting representatives as court-appointed receivers, Crozer CEO Anthony Esposito, and Prospect Medical Holdings representatives.
The Office of Attorney General has been involved due to concerns over Prospect's management leading to facility closures and service reductions. Recently, they filed a civil lawsuit against Prospect alleging violations of a 2016 purchase agreement.
"The future of Crozer Health has dominated my first month in office," remarked Attorney General Sunday. Further details are expected as efforts continue towards a permanent resolution.
For more information about The Foundation for Delaware County, contact Katy Lichtenstein at klichtenstein@delcofoundation.org or call 610.744.1017.