An independent receiver appointed by the courts began overseeing the Crozer Health system on Feb. 14 and will run hospital operations for 30 days, barring an extension, paid for with $20 million in state and county funds, writes Harold Brubaker for The Philadelphia Inquirer.
The temporary manager, FTI Consulting, is overseeing the Crozer-Chester Medical Center in Chester and Taylor Hospital in Ridley, and also evaluating Crozer’s financial condition.
State and county officials had little choice but to subsidize the hospital operations temporarily as Crozer Health’s for-profit owner Prospect Medical Holdings, talked about closing Crozer Health amid bankruptcy proceedings in federal court.
The state is providing $10.2 million, while the county is providing $9.8 million.
Most of the state’s contribution is an advance payment of supplemental Medicaid payments normally paid in June. Those funds go to hospitals that care for a higher number of low-income patients.
A Hospital and Health System Emergency Relief Fund from the Pennsylvania Department of Community and Economic Development is kicking in another $572,000, with insurer UnitedHealthcare also providing $300,000.
Delaware County is using a block grant for mental health services from the federal government.
Read more about Crozer Health receiver and how the funding was secured for Crozer Health in The Philadelphia Inquirer.
