Crozer Health’s transfer to a consortium of nonprofit healthcare operators has stalled, reports a Prospect Medical Holdings attorney.
Prospect announced Friday it had reached a deal working with the Pennsylvania Attorney General’s office to transfer Crozer Health to a “not-for-profit consortium of health-care operators.”
But on Monday, Prospect’s attorney informed the judge in federal bankruptcy court that negotiations over the weekend “hit a snag,” writes Harold Brubaker for The Philadelphia Inquirer.
Prospect’s lawyer, Thomas Califano did not say what the snag was.
On Thursday, Prospect will either ask the judge for a 30-day extension of bankruptcy funding for Crozer, or a plan to shut down Crozer’s Delaware County hospitals, according to Califano.
“I really hope it’s not the agreed shutdown,” he said.
On Jan. 14, at the first hearing of Prospect’s bankruptcy case, Califano raised the possibility that the Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park would close if they couldn’t be transferred to a new operator.
The state has sought to take over Crozer Health, using a temporary manager known as a receiver to return the hospitals to financial stability before transferring them to a nonprofit.
Find out more about this latest Crozer Health development in The Philadelphia Inquirer.
