Prospect Medical Holdings to 'begin the process of winding down Crozer Health'
Crozer Health to close: Everything you need to know
After failing to find a buyer or secure the money needed to remain afloat, FTI Consulting on Monday said Prospect Medical Holdings will start to "wind down operations" at Crozer-Chester and Taylor hospitals in Ridley Park.
PHILADELPHIA - Prospect Medical Holdings, the Texas-based healthcare company behind Crozer Health, will start to wind down operations at the Delaware County hospital.
"Prospect Medical Holdings will file closure notices and begin the process of winding down Crozer Health and all of its operations," FTI Consulting said via email.
At last check, Crozer received a $6M donation from Penn Medicine and Delaware County that temporarily kept the floundering hospital afloat for a week.
"As court-appointed receiver, we are disappointed an alternative resolution and sale could not be reached," FTI Consulting continued in a statement.
What we know:
After failing to find a buyer or secure the money needed to remain afloat, FTI Consulting on Monday said Prospect Medical Holdings will start to "wind down operations" at Crozer-Chester and Taylor hospitals in Ridley Park.
"Today, Prospect Medical Holdings will file closure notices and begin the process of winding down Crozer Health and all of its operations," a statement from FTI Consulting emailed to FOX 29 News read. "As Court-appointed receiver, we are disappointed an alternative resolution and sale could not be reached."
This comes after Prospect Medical Holdings, the hospital's ownership group, was thrown a multi-million-dollar lifeline last week from Penn Medicine and Delaware County. This short-term funding helped cover the hospital's payroll, among other operational necessities, as they searched for a long-term solution.
A Penn Medicine spokesperson said the $5 million offer to help Crozer Health's operations was rejected by Prospect Medical Holdings.
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Crozer Health remains open after receiving $6 million donation in short-term funding
Crozer Health will not immediately close after it has received donations from Delaware County and Penn Medicine.
Crozer-Chester and Taylor hospitals employs 3,200 people and provides critical care for an estimated 200,00 people who live near the facility. An email from FTI Consulting directed any question about hospital employees and patients to Prospect Medical Holdings.
"We are thankful to all those who came forward and offered potential solutions to sustain operations, as well as the patients who put their trust in Crozer Health and the dedicated employees who have continued to show up at work leading up to and throughout this process to provide the care and comfort patients need," the statement continued.
What they're saying:
A Penn Medicine spokesperson sent the following statement to FOX 29 regarding Penn Medicine's offer:
"We are deeply saddened to hear that Prospect Medical Holdings plans to close Crozer Health. For nearly two years, Penn Medicine has been actively engaged in creative efforts to help sustain essential healthcare services and protect health care jobs at Crozer Health. Earlier this month, we made an offer of $5 million to support Crozer Health’s operations and purchase certain assets associated with Crozer’s Broomall and Brinton Lake outpatient facilities. Our offer also included the transfer of leases for these facilities. This plan would have allowed uninterrupted operations for patients to receive both primary care and care by specialists including oncologists, cardiologists, and orthopedics, while retaining doctors, nurses, and staff, and ensured thousands of already-scheduled appointments could proceed. Despite these efforts, Prospect Medical notified us last week that they rejected our offer. We are deeply disappointed by this decision, which will have negative impacts for patients and displace many talented health care professionals at a time when health care needs in the community are only increasing. Our doors are open to patients and to the dedicated Crozer employees, and our health system remains committed to the Delaware county community and to working alongside local providers, community leaders, and policymakers to preserve health care in the region."
Pennsylvania Senator Tim Kearney called Prospect's decision to close the hospital "a devastating and disgraceful blow to our communities."
"Prospect’s decision to move forward with the closure of the Crozer Health System is a devastating and disgraceful blow to our communities, our healthcare workers, and every patient who has ever relied on our local hospital system," Kearney said in a lengthy statement.
Attorney General Dave Sunday's Office continued the backlash against Prospect Medical Holdings, claiming its leadership "prioritized their own wealth over the wellbeing of a community."
"Along with the Governor’s office and other state and local leaders, we worked tirelessly to avoid this outcome. Unfortunately, the damage inflicted by Leonard Green & Partners — the private equity owners of Prospect — who prioritized their own wealth over the wellbeing of a community, was too much to overcome," a statement read.
Pennsylvania Governor Josh Shapiro sent the following statement regarding Crozer Health's closures:
"Prospect Medical Holdings, the for-profit owner of Crozer Health, pillaged these hospitals for their own gain – and today, we see the result of their greed and mismanagement with the announced closure and loss of critical health care services for the people of Delaware County."My Administration has worked tirelessly for more than two years alongside the Office of Attorney General, state legislators, and local government – committing millions of dollars to support Crozer and its workers while ensuring not one penny of taxpayer money be used to enrich Prospect. Now, we will keep working closely with our local partners to support the workers who have served so many families and patients and continue fighting for the patients who have been harmed by Prospect's greed.
Prospect caused this crisis, and they must be held accountable for their reckless actions that have led to today’s announcement. Their conduct and mismanagement must be fully reviewed in the bankruptcy legal process to hold them to account under the law, and we must ensure this never happens again by passing legislation to get private equity out of the health care business in Pennsylvania, as I proposed in my budget address earlier this year."