A Prospect Medical Holdings attorney is reporting that a new operator for Crozer Health chosen by the Pennsylvania attorney general could be found as soon as next week.
However, a decision to close Crozer-Chester Medical Center and Taylor Hospital could also be made at that time, writes Harold Brubaker for The Philadelphia Inquirer.
This all comes after Prospect Medical Holdings, owner of the Crozer Health system in Delaware County, filed for Chapter 11 bankruptcy Jan. 11.
Prospect’s bankruptcy lawyer told a federal bankruptcy judge in Texas Tuesday that the company could ask for approval as soon as Monday, Jan. 20, to transfer Crozer Health hospitals to a new operator.
It’s also possible that the for-profit Los Angeles company could seek an emergency motion in court next week to close Crozer facilities, according to Thomas R. Califano, of Sidney Austin LLP.
Prospect Medical talked with the attorney general’s office on Monday, Jan. 13.
“They’ve been moving very quickly, and we have pledged to do whatever we can with them to keep these hospitals operating, and get them in the right hands,” Califano said.
Crozer is losing about $160 million in cash a year, according to bankruptcy documents.
Find out more about Prospect’s bankruptcy proceedings in The Philadelphia Inquirer.
