Agreement reached in Crozer Health deal to save Delaware County hospitals, Pennsylvania Attorney General says
An agreement was reached after plans were in jeopardy to save Crozer Health and keep two Delaware County hospitals open, Pennsylvania Attorney General David Sunday, Jr. announced on Friday.
"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," Sunday said in a statement.
"I am encouraged that the parties, today, remained focused on preserving accessible healthcare for the Delaware County community and maintaining the workforce that provides that essential care," Sunday continued.
Lawyers for Prospect Medical Holdings and the Pennsylvania attorney general told the court in an emergency bankruptcy hearing in Dallas on Thursday that the deal to find a long-term solution had "blown up," and they say Penn Medicine, the health system in negotiations with other partners to come in and rescue the system, had walked away from the table.
This is after a board member with the Foundation for Delaware County sued for an emergency injunction to effectively block the use of foundation funds to keep the Crozer system running. A judge granted the preliminary injunction Thursday morning.
The bankruptcy court judge ordered lawyers to a face-to-face meeting this weekend in Harrisburg to fix the mess.
"We look forward to updating the bankruptcy court — which has ultimate approval authority over plans for Crozer — at our next hearing," said Sunday. "There is much work to be done, but we will not stop fighting on behalf of Pennsylvanians."
