A bankruptcy judge overseeing the disposition of the Crozer Health system called an emergency hearing Thursday afternoon after a Delaware County court injunction blocked funds from The Foundation for Delaware County to sustain two Crozer hospitals.
The Foundation is now asking that the injunction, which threated to derail negotiations for the long-term operation of the hospital system, be dissolved.
A Foundation board member had sued for the injunction arguing that Foundation funds are earmarked for charitable purposes, not to sustain a hospital system in the long-term, writes Joe Holden for CBS News Philadelphia.
The Foundation has provided two weeks’ worth of funding to cover operations at Crozer-Chester Medical Center and Taylor Hospital.
U.S. Bankruptcy Court Chief Justice Judge Stacey G.C. Jernigan asked the Foundation to commit $13 million beyond the two weeks to help reach a long-term deal, writes Kathleen E. Carey for the Daily Times.
An attorney representing the Foundation told the judge the board of directors would have to make that decision.
Meanwhile, a spokesman for Penn Medicine has joined the conversation about Crozer’s future.
Penn Medicine has advocated for a consortium of nonprofit hospitals, foundations and county and state officials to ensure continued health care for patients in southern Delaware County.
“This is crucial work which can only be accomplished through a collective plan with financial and operational support from numerous partners,” the spokesperson said.
Find out the latest on Crozer Health at CBS News Philadelphia and the Daily Times.
