Please ensure Javascript is enabled for purposes of website accessibility Crozer Health Update: Closure Motion Hearing Scheduled for Thursday

Crozer Health Update: Closure Motion Hearing Scheduled for Thursday

 

Dear neighbor,

 

This afternoon, the bankruptcy judge in Texas held a status hearing on the Crozer Health System and it was full of bad news for Delaware County. Prospect Medical Holding’s lawyers opened by telling the judge that there is no Asset Purchase Agreement (sale) ready to put before the judge today and if they didn’t receive $9M by 4pm tomorrow to keep the hospital open for two more weeks, they planned to begin closure proceedings tomorrow. When the judge pressed them for more details about the closure plan, they said they would go on diversion on Thursday, start transferring patients to other hospitals, and close the hospitals within two weeks. This latest shakeup comes after the Commonwealth of Pennsylvania, Delaware County, and the Foundation for Delaware County put in a total of $40M over the last two months in an effort to avoid a closure, funding the Receiver’s account to make payroll at the request of the Attorney General’s office. Prospect told the judge they want the Commonwealth of Pennsylvania to put up the $9M, but there’s no guarantee that we won’t be right back in this same position in two weeks’ time, and we’re tired of them asking for taxpayer bailouts. My sources have told me that negotiations on the Asset Purchase Agreement had been proceeding in a positive manner but Prospect threw a wrench in the negotiations over the weekend and they appear to have blown up all the progress made towards a sale with unreasonable demands yet again.

 

The Attorney General’s office pushed back on Prospect during the hearing and called out the mismanagement and losses by Prospect that created all of these problems in the first place. The Receiver appointed by the courts, FTI, has come up with a plan to reduce the systems current losses from $140M to $15M a year, but that plan requires funding commitments from other health systems that have not yet come through, and time to unravel the structural and liability issues caused by Prospect.

 

The Receiver’s attorney disputed Prospect’s claims that they are out of money by tomorrow because the operating account he manages currently holds slightly more than $25M, with $10M committed to the next payroll, and money continuing to come into the account through accounts receivable. It seems like Prospect is looking for an excuse to close our hospitals.

 

Both the judge and the Attorney General’s lawyer commended the staff who have continued to serve patients during very challenging circumstances, with the judge calling them “angels.”

 

I and so many others want Prospect and the former owners that extracted resources from our hospital system to be held accountable and I’ve asked the Attorney General’s office to press charges in many, many meetings. The judge said that the forensic phase of a bankruptcy case usually comes later in the process, when the court will ask the question, “Who may have done something bad here?” When that phase comes, she said she will look at any evidence of wrongdoing and there’s the possibility of a massive settlement agreement. Unfortunately, that will come too late to help with immediate cash flow needs for the Crozer system.

 

In one final effort to prevent a closure, the judge ordered a 9am ET Zoom meeting tomorrow of all the parties that have been involved in the Asset Purchase Agreement negotiations. She also scheduled a 4pm ET hearing on Thursday to hear Prospect’s motion to close the hospitals. If Prospect moves forward with their plan, they may actually start the closure process before they are back in court on Thursday.

 

I am heartbroken for our community and furious that a California-based hedge fund has been allowed to extract so much from us despite all of our efforts to stop them. There is a small chance that tomorrow morning’s meeting might bear fruit, but I’m not hopeful. Prospect’s greed and unreasonable demands are hurting us once again. I will continue to push for criminal charges and we plan to run legislation soon to ban private equity from owning hospitals and end the kind of lease-leaseback deals that created so much unnecessary debt for Crozer. We passed similar legislation through the House last year but it died in the Senate when Majority Chairman Brooks removed the language of private equity from the bill, making it toothless. Getting this legislation signed into law won’t save Crozer, but it would stop entities from Prospect from creating this kind of damage in other communities.

 

 

AT THE CAPITOL

Fighting for Women's Reproductive Rights

On Monday, I joined my colleagues in the Capitol Rotunda to rally for women’s reproductive rights. In Pennsylvania, we’re working hard to keep the commonwealth a safe place for women to obtain the health care they need and for health professionals to provide that care without ideological interference from their government.

 

 

IN THE DISTRICT

Celebrating a Decade of Fire Service

It’s been 10 years since Aston Township Fire Department was created through a merger of two local companies. On Saturday, I was honored to join Chief Mike Evans, President Sean Joyce and the rest of their members to celebrate a decade of strong service to our community.

 

Hedgerow Theatre Company Women & Family Resources Panel

On Friday evening, I joined Congresswoman Mary Gay Scanlon and Michelle Brown, the Executive Director of Domestic Abuse Project of Delaware County, Inc., at  Hedgerow Theatre Company for a pre-show open conversation about issues impacting women and families in our community before the performance of ‘Nora: A Doll’s House.’ A special thanks to Marcie Bramucci, the Executive Artistic Director, for bringing us together for an engaging conversation of possibility and connection.

 

Solar for Our Economy and Our Environment

Last Wednesday, I was invited to speak at Sun Center Studios in Chester Township as they hosted community members and elected officials to tour their solar panels. The solar panels were installed by members of IBEW 654 right here in Delco. The event was organized by PennEnvironment, a nonprofit that works to highlight clean energy.

 

I am proud to celebrate a business in Delaware County and within my District that has decided to make an investment in solar energy to power our economy and protect our environment.

 

Send Me Your Fish Photos!

Trout season opened in Pennsylvania on Saturday and the Pennsylvania Fish and Boat Commission continues to stock our waters with beautiful trout. Send me a photo of your catch or your fishing adventures and I’ll feature it on my social media and in periodic collages on my website. The Delco Anglers have taught me so much about the importance of this treasured pastime in our community.

 

 

STATE PROGRAMS AND INFORMATION

Do You Need a REAL ID? This Webinar Will Help You Find Out.

You may be hearing stories of long lines and long wait times happening at PennDOT centers across the state as folks try to get their REAL IDs before enforcement begins at airports and federal facilities on May 7.

 

You also may be wondering whether you even need one. A REAL ID isn’t mandatory, but it may come in handy. If you have questions about which federal facilities will require one and whether your current passport or equivalent ID can stand in as a REAL ID, please plan to attend this virtual REAL ID Webinar I am co-hosting with colleagues from 6 p.m. to 7:30 p.m. on April 22.

 

PennDOT will help answer questions you may have about the process and what you need in order to obtain a REAL ID.  To register, visit www.SenatorKearney.com/REALID

 

PA Department of Revenue extends customer service call center hours to assist late-season tax filers

As the April 15, 2025 deadline to file 2024 Pennsylvania personal income tax returns approaches, the PA Department of Revenue is extending its call center hours to assist late-season filers. Taxpayers can call 717-787-8201 during the extended hours:

  • April 8–11: 8 a.m. – 7 p.m.
  • April 12 (Saturday): 10 a.m. – 3 p.m.
  • April 14–15: 8 a.m. – 7 p.m.

Additional support is available through:

  • The Online Customer Service Center at revenue.pa.gov/help.
  • Revenue District offices (appointment encouraged), open weekdays from 8:30 a.m. to 5 p.m.
  • Refund status checks via the “Where’s My Income Tax Refund?” tool or 1-888-PATAXES.

Free filing options:

  • myPATH: file state taxes online without creating an account.
  • Direct File: new this season, lets eligible taxpayers file both federal and state returns in one place. 

Available tax credits:

  • Child and Dependent Care Enhancement Credit
  • Tax Forgiveness (Special Poverty) for retired and low-income individuals
  • Anyone earning more than $33 in taxable income in 2024 must file a return by midnight, April 15, 2025.

Spanish-language resources are also available via myPATH, including a how-to video.

 

LIHEAP Extended to April 18

The Low Income Home Energy Assistance Program application period was recently extended to April 18 to make sure all eligible families can apply for relief from the cost of this winter’s heating bills. This program provides a cash grant sent directly to your utility company to help with the bill. To see if you qualify and to apply, visit the LIHEAP website or contact my office.

 

 

UPCOMING MOBILE OFFICE HOURS

I offer mobile office hours at multiple locations throughout the district to ensure that everyone I represent has access to the services my office provides. We look forward to seeing you at the location that is most convenient for you.

DCHA Kinder Park on Thursday, April 10

 

Upland Borough at McQueen Hall on Tuesday, April 15

 

American Legion Post 777 on Thursday, April 17

 

 

UPCOMING EVENTS

Medigap Webinar on Wednesday, April 23

10 a.m. to 11 a.m. online


This webinar will focus on supplemental Medicare plans, also known as Medigap. Call my office at 610-534-6880 or email RepKrueger@pahouse.net to get the webinar link.

 

SCAM JAM on Friday, April 25

10 a.m. to noon
Aston Township Fire Department

 

Hear from law enforcement and banking officials on how to spot and avoid frauds and scams and keep your money and property safe! Space is limited for this always fun and informative event. Call my office at 610-534-6880 or email RepKrueger@pahouse.net to let us know you are coming.

 

License Plate Replacement Event on Thursday, May 1
4 p.m. to 6 p.m.
Gouley Park
101 Plush Mill Road, Media
 

Is your license plate hard to read, damaged or peeling? Don’t get fined for driving with an illegible plate! Local law enforcement will be at this event to determine if your plate needs to be replaced.

 

Drivers must bring an unexpired Pennsylvania driver’s license and current vehicle registration card. New plates are not issued at this event. Once your paperwork is processed, I will drive it back from Harrisburg and my office will call you to pick up your new plate. Registration is required. Call my office at 610-534-6880 or email RepKrueger@pahouse.net to register.

 

Free Shredding and Drug Take Back on Saturday, May 10

9 a.m. to noon
Upland Park, Brookhaven
Protect your identity and get rid of unneeded medications at this event I’m hosting with Sen. John Kane.

 

 

HAPPENING IN THE COMMUNITY

E-Waste Collection at Upland Park on April 23

The Pennsylvania Resources Council is holding an e-waste collection event on Wednesday, April 23 from 9 a.m. to 1 p.m.  at Upland County Park to provide Delaware County residents with a convenient and cost-effective method of responsibly disposing of electronic equipment. Please register for the event here

 

At no cost, individuals can drop off CPU (towers), laptops, mice and keyboards; home and cell phones; DVD players, VCRs, stereos and video game consoles; vacuum cleaners and other electronics. 

 

Televisions, computer monitors and printers can be recycled for a fee.

More details on what’s free and what has a fee can be found here.

 

As always, please feel free to reach out to my office for help with any state-related issues.
 
Sincerely,

Rep. Leanne Krueger
161st District, Delaware County

Pennsylvania State Capitol
512-E Main Capitol Building
Harrisburg, PA 17120
(717) 705-2567

Brookhaven District Office

115 E. Brookhaven Rd.
Brookhaven, PA 19015
(610) 534-6880