Crozer Health search for long-term solution continues
Crozer Health sale: Draft agreement in play
In the fight to save Crozer Health System, a "draft agreement" has been developed to sell the medical center in order to keep its hospitals open.
PHILADELPHIA - In the topsy-turvy fight to save the ailing Crozer Health System, there’s good news.
A federal bankruptcy judge was told there is a "draft agreement" to sell the Crozer Medical Center of Upland and Taylor Hospital of Ridley Park to parties involving Penn Medicine, the Commonwealth of Pennsylvania, and Delaware County.
What they're saying:
New details have emerged after an afternoon bankruptcy hearing in Texas called by a judge after the deal to keep Crozer Health's hospitals open seemed in deep trouble late last week.
Several parties involved in the matter were ordered to meet in person with the Pennsylvania Attorney General on Friday.
Along with the draft sale agreement, Frances Sheehan, the President of the Foundation for Delaware County, confirmed the group would pour another $13 million into the effort to keep the hospitals on life support. $7 million would be paid in the next few days, and the remaining $6 million by April 1, 2025.
There were no details released on the possible sale, but the judge was told the agreement "is being negotiated now."
Crozer and Taylor have been under threat of closure after the former, for-profit owner, Prospect Medical Holdings of California, previously said it may shut down the hospitals.
A Penn Medicine spokesperson released the following statement to FOX 29 Monday afternoon:
"Reports suggesting that Penn Medicine is in negotiations to acquire Crozer Health are inaccurate. We are actively working with a range of partners to explore potential solutions to ensure care continuity for patients in southern Delaware County. A successful plan will require funding commitments and assistance from multiple stakeholders, including health systems, the state, county, and foundations."
What's next:
The judge has asked for another hearing to occur Wednesday in Texas and has scheduled the day the sale could be approved for Tuesday, April 1.
The Source: The information in this story is from details obtained from a Texas bankruptcy court hearing.