Crozer Health: No Closure Today

Rep. Leanne Krueger April 10, 2025 | 5:32 PM

Today almost 600 people tuned in online for another hearing on Crozer at the bankruptcy court in Texas. A few hours before the hearing, the closure motion that Prospect threatened on Tuesday was taken off the agenda, meaning they did not present a plan to close today. Prospect attorneys informed the judge that they had been able to raise $6M to keep the system open for a week to 10 days. The $6M included $5M from Penn Medicine structured as a partial donation as well as a purchase of the furnishings and assumption of leases for Broomall and Brinton Lake locations as well as $1M from Delaware County that is an advancement of funds for behavioral health services. While this wasn’t the full $9M that Prospect demanded on Tuesday, it was enough to avoid a closure today. They told the judge that they would begin to implement the court-appointed Receiver’s plan for restructuring on an expedited basis, including moving OB/GYN services to another provider who they did not disclose during the hearing. The patient ombudsman appointed by the bankruptcy court has been on the ground in Delaware County to ensure continuity of patient care as much as possible.

What the Prospect attorneys didn’t announce today was a sale – negotiations are still ongoing for an Asset Purchase Agreement to transfer the system to a nonprofit consortium. The hearing ended with Prospect’s attorneys asking the judge to keep on the docket both a motion to sell and a closure motion. We avoided a closure today, but we are not out of the woods yet.

Meanwhile, the Commonwealth of Pennsylvania has invested $60,572,000 in Crozer Health since Prospect took control of the Crozer system in 2016. This includes a combination of medical assistance funding, COVID relief support for hospitals and $10M in advanced funding at the request of the Attorney General earlier this year to provide liquidity to allow for a long-term solution to be put in place. The Commonwealth of Pennsylvania, Delaware County, the Foundation for Delaware County and now Penn Medicine have all invested in trying to prevent a disorderly closure. While the top priority right now is trying to negotiate some kind of sale, I want the bankruptcy judge to hold Prospect accountable and to claw back assets from the bad actors who extracted resources from our healthcare system to make themselves richer. The judge promised at Tuesday’s hearing that a point would come later in the bankruptcy process where she would ask the question, “Who may have done something bad here?” I and so many others from Delaware County look forward to that day.

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