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Agreement reached on Crozer Health's future amid restructuring talks

LEGAL NEWSLINE

Sunday, March 30, 2025

Agreement reached on Crozer Health's future amid restructuring talks

State AG
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Attorney General Michelle Henry | Official Website

Attorney General Dave Sunday has provided an update on the situation concerning Crozer Health in Delaware County. This follows a recent meeting organized by the Office of Attorney General.

Sunday stated, "Today, all parties involved in developing a long-term solution to keep the Crozer Health system open and operational met for a meeting in Harrisburg. I am pleased to announce that an agreement was reached with The Foundation for Delaware County."

He further elaborated that The Foundation will participate in ongoing plans for Crozer's restructuring, initially under FTI Consulting as a receiver and eventually under a permanent non-profit owner. Sunday acknowledged the contributions of regional healthcare providers in these discussions, saying, "We appreciate the good faith efforts of regional healthcare providers involved in ongoing discussions."

The focus remains on maintaining accessible healthcare services for the community and supporting the workforce that delivers these services. Representatives from various organizations attended the meeting, including those from the Office of Attorney General, Governor’s Office/Office of General Counsel, The Foundation for Delaware County, a Patient Care Ombudsman, FTI Consulting, Prospect Medical, Delaware County, and the Unsecured Creditors Committee (UCC).

Looking ahead, Sunday mentioned plans to update the bankruptcy court regarding developments at Crozer Health: "We look forward to updating the bankruptcy court — which has ultimate approval authority over plans for Crozer — at our next hearing."

He concluded by affirming their commitment to continue working diligently: "There is much work to be done, but we will not stop fighting on behalf of Pennsylvanians."

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