Upland, Pa.-based Crozer Health, owned by Los Angeles-based Prospect Medical Holdings, will remain open beyond March 14, the day Prospect had set for its closing, due to last-minute funding from the Foundation for Delaware County, Philly Voice reported March 10.
Here are five things to know from the report:
1. The cash infusion came after a federal bankruptcy court arranged an emergency meeting March 9 between Prospect, Crozer's CEO Anthony Esposito, Pennsylvania Attorney General Dave Sunday, Delaware County leaders, the foundation and FTI Consulting, which was appointed as the receiver of Crozer amid the closure announcement.
2. Crozer is the largest hospital system in Pennsylvania. Prospect, which employs more than 11,000 physicians, filed for Chapter 11 protection in January as it made plans to sell 10 of its 16 hospitals.
3. Mr. Sunday announced the Foundation for Delaware County's commitment March 9, but did not disclose the amount of the commitment or say how long the system would remain open. More details on a long-term plan for the system are expected in the coming weeks, according to the report.
4. The Foundation for Delaware County was formed with the nonprofit assets from Prospect's purchase of the former Crozer-Keystone Health System in 2016. The foundation received $55 million from the sale to strengthen healthcare in the area.
5. Mr. Sunday said that his office recently filed a civil lawsuit against Prospect, alleging it violated its 2016 purchase agreement for the system.
"The future of Crozer Health has dominated my first month in office," Mr. Sunday said in the report. "And it deserves that full attention, as this system is an asset to the communities it serves and an economic driver for Delaware County."