At a Monday court hearing, Crozer Health — a bankrupted hospital health system in Delaware County — said it was partnering with Penn towards a potential acquisition. But a Penn Medicine spokesperson told The Daily Pennsylvanian that was an "inaccurate" characterization.
Crozer Health and its owner Prospect Medical Holdings filed for bankruptcy in January, creating financial and public health concerns for the region. In October 2024, the Pennsylvania attorney general filed a suit alleging neglect against Prospect.
During a March 24 court hearing, Prospect attorney Bill Curtin said the University of Pennsylvania Health System was involved in discussions surrounding a potential permanent solution to the situation. According to Curtin, the solution will consist of a “partnership between Delaware County and Penn, with support form the Commonwealth and from other parties.”
However, Penn alleges its involvement will be restricted. A Penn Medicine spokesperson wrote in a statement to the DP that reports suggesting the University is ""negotiations to acquire Crozer Health" are not accurate.
"We are actively working with a range of partners to explore potential solutions to ensure care continuity for patients in southern Delaware County,” the spokesperson wrote. “A successful plan will require funding commitments and assistance from multiple stakeholders, including health systems, the state, county, and foundations."
Crozer currently employs 3,000+ people, and concern over a massive loss in tax revenue concerns the affected communities. Delaware County and Chester County officials have been unsuccessful in their attempts to find a new owner for the health system until now.
"I'm annoyed that our health care institutions in the Philly area aren't stepping up to do more. … Instead of this problem landing on their doorstep, they should be more affirmative and step up and do more," Pennsylvania Governor Josh Shapiro said. He called on other Pennsylvania health systems — including Penn Medicine — to intervene earlier this month.
The Inquirer previously reported that meeting the anticipated negotiation deadline of April 1 may be challenging.
Prospect Medical Holdings has yet to provide the necessary financial information, and representatives of the county are "somewhat surprised by the current terms" of the negotiations.
"We remain steadfast in our efforts to keep accessible health care for the delaware county community. These next few days will be crucial to finalizing a purchase agreement that sustains Crozer Health as an economic engine for the community and a local source for essential care," Attorney General Dave Sunday wrote in a statement to the Inquirer.
It has not been disclosed whether or not other local health systems will become involved in a long term solution for Crozer Health. State officials have been working for two years to preserve the jobs at the facilities within the four-hospital health system and continue providing “health services to a low-income area,” the Inquirer reported.
In order to temporarily sustain Crozer’s operations temporarily until a solution is fully negotiated, the Foundation for Delaware County agreed to pay additional sums. $7 million has already been paid prior to this week. The Foundation paid another $7 million this week, and will pay an additional $6 million before the beginning of April to maintain hospital operations for the time being.
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