An agreement hammered out on Sunday will keep Crozer Health open while a permanent restructuring of the system takes place.
The California-based owner of the health care system had taken steps toward shutting down the Delaware County health care system.
A Texas federal bankruptcy court judge convened a virtual meeting between all parties on Sunday that included Pennsylvania's Attorney General and the Foundation for Delaware County, which was formed with the nonprofit assets from the purchase of the Crozer-Keystone Health system to Prospect Medical Holdings in 2016.
The Foundation for Delaware County committed funding that remedies immediate shortfalls that would have led to Crozer closing.The foundation has been wary of funding Crozer, given the seriousness of the healthcare system's financial situation.
The closing would have created a regional health care crisis. Crozer operates a regional burn center that treats Delaware patients at its hospital near Chester, PA. It also operates a trauma center.
Most recently, the Office of Attorney General filed a civil lawsuit against Prospect and partners, alleging Prospect violated a 2016 purchase agreement and seeking payment of outstanding costs and court-appointment of new management that would rescue the failing system.
Crozer has been in financial trouble for years and has closed down hospitals in the county.
Wilmington-based ChristianaCare earlier reached a preliminary agreement to merge with Crozer. ChristianaCare decided to walk away from the deal, citing a changing healthcare landscape. Delaware's largest healthcare system also found issues related to converting from a for-profit to a nonprofit system.
The parent company of Crozer later went into bankruptcy proceedings.
For its part, ChristianaCare plans to expand in Delaware County with two small "neighborhood hospitals" that will join its medical offices in the Concordville-Chadds Ford area.
Also, ChristianaCare will open a neighborhood hospital at the former Jennersville Hospital site in neighboring Chester County, PA.
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