The fate of Crozer Health hospitals in Delaware County hangs in the balance as a proposed deal to appoint a receiver moves forward. The agreement, filed in bankruptcy court, aims to stabilize the struggling health system, but details on state financial support remain unclear. The appointment of FTI Consulting Inc., a national advisory firm specializing in healthcare crisis management, could offer a pathway to keep the hospitals operational.
A proposed deal to appoint a receiver to oversee the operations of Crozer Health hospitals in Delaware County is moving forward. The agreement, filed in U.S. Bankruptcy Court for the Northern District of Texas, seeks to place FTI Consulting Inc., a national advisory firm specializing in healthcare crisis management, in charge of the hospitals pending further action.
While the agreement isn't final and details regarding state financial support for the hospitals remain unclear, it offers a path forward for stakeholders exploring options to keep the facilities operational. \FTI's appointment, contingent upon court approval, aims to stabilize the struggling health system, which has been experiencing significant financial losses, according to its attorney. The filing states that the receiver will manage the hospitals until further notice. The agreement highlights the critical role Crozer hospitals play in serving a low-income community with limited access to healthcare alternatives. \State Senator Tim Kearney expressed concern about the impact of the hospitals' closure on residents, urging the judge to prioritize public good in the decision-making process. The state government, led by Governor Josh Shapiro, has expressed its intent to transition Crozer to a new nonprofit supported by a consortium of local nonprofit health systems. However, progress on forming this group has been slow. Meanwhile, a patient care ombudsman, appointed by the bankruptcy court to monitor patient care quality, recently visited Crozer-Chester and Taylor hospitals, noting excellent patient care during her visits. \She emphasized the need for continued efforts to keep the hospitals running, highlighting that the emergency departments, with 65,000 visits in 2023, serve a vulnerable population who rely on Crozer for essential medical services. The future of Crozer remains uncertain, following years of instability since Prospect, a for-profit company, acquired the then-nonprofit system. Prospect's decision to sell Crozer's real estate as part of a larger 14-hospital deal raised $1.55 billion, some of which was used to pay off debt and fund dividends for executives and investors. The sale required Crozer to lease back its properties, further adding to its financial burden. \The situation is further complicated by ChristianaCare's entry into Delaware County's healthcare market, building two micro-hospitals to compete with Crozer. The first is expected to open in August, potentially impacting Crozer's patient base. The proposed receiver appointment offers a glimmer of hope for Crozer's survival, but the long-term viability of the hospitals remains unclear.
Crozer Health Hospitals Receiver Bankruptcy Delaware County Healthcare Crisis State Support FTI Consulting Patient Care Nonprofit Transition
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