FTI Consulting will manage Crozer Health System preventing hospital, facility closures

MEDIA, Pa. - The fate of Crozer Health, vital to Delaware County, is being decided in a Dallas, Texas court where a federal bankruptcy judge is ruling on its future.

Stefan Roots is the first term mayor of Chester pressing to bring back the city from decline. 

What they're saying:

"We’re in the city of Chester with no primary care physicians. We’re talking a healthcare system where the emergency room is pretty much the doctor’s office," Roots said of Crozer Health, "People go there for bumps, bruises, people fall down. That’s the only choice they have."

In January, Crozer’s for-profit owners, Prospect Medical Holdings, filed for bankruptcy, threatening its Delaware County Hospitals. 

A court filing in Texas details a short-term solution, reading, "the Parties have been working tirelessly to find a consensual resolution." 

It continues, "the parties have agreed to have FTI Consulting, Inc. assume the operation of the facilities."       

That would last 30 days while long-term solutions are sought for Crozer Medical Center of Upland and Taylor Hospital of Ridley Park. 

Roots said, Crozer is important, "not just for healthcare but for jobs. So many people are employed at Crozer. It’s a staple here. It’s hard to imagine for people who’ve lived here for a long time that would be gone."

Later Thursday evening, Attorney General Dave Sunday issued the following statement regarding the developments: 

"The Office of Attorney General has been actively engaged in seeking a solution to mismanagement of the Crozer Health System, which has resulted in closures and cuts to services. On Thursday, a Texas bankruptcy court approved the appointment of a receiver of our choosing, FTI Consulting, to take over management of the Crozer Health System. This action prevents the impending, immediate closure of remaining Crozer hospitals and facilities, ensuring care for current patients as permanent plans are developed."

 Anthony Esposito, CEO of Crozer Heath, sent the following statement regarding the court’s approval of the receiver agreement:

"Crozer Health looks forward to working constructively with the Commonwealth of Pennsylvania and FTI Consulting to ensure that our communities continue to receive uninterrupted access to the critical health services they require. As always, we remain focused on providing high-quality and personalized care to our patients, and will continue to uphold that commitment throughout this process."

Governor Shapiro's spokesperson, Will Simons, sent FOX 29 the following statement:

"As Governor Shapiro made clear in his budget address this week, private equity has infected our health care system – and for nearly two years, the Shapiro Administration has worked with the Office of Attorney General and local partners to get Prospect Medical Holdings out of Delaware County, keep Crozer open, and support its dedicated workforce. 

As a result of hard work by the Shapiro Administration culminating with today’s legal action, Prospect will no longer manage Crozer – an independent receiver will immediately take over, providing an opportunity to transition the health system to sustainable, nonprofit ownership. To maintain critical health services and support the health care workforce as the health system looks to make that transition, the Shapiro Administration is providing critical bridge funding directly to the receiver. 

Prospect has a long track record of reckless, greedy, and irresponsible management of Crozer – and they will not receive a cent of this funding. The Shapiro Administration will continue to engage with regional health care partners and local leaders to identify a long-term solution that ensures access to health care for Delaware County residents."

What's next:

With Crozer struggling, Roots said he has hired a health director to tackle infant mortality and asthma. 

In a statement, the chair of Delaware County Council, Dr. Monical Taylor, writes that the county wants to support Crozer Health, but "until Prospect’s financial issues are resolved, we won’t know specifically how we will need to step up." 

"I need, and the county needs, this facility to remain open somehow, it’s going to have to remain open. We’ve seen the numbers. 60,000 ER visits in a year. That’s 150 ER visits a day. That’s vital," said Mayor Roots.

After the announcement of FTI Consulting's managing decision, the Commonwealth and Delaware County are expected to contribute significant funds to support the plan.