How Crozer-Chester is navigating after parent company files Chapter 11 bankruptcy
In an update sent to FOX 29, a Crozer Health spokesperson says they are still accepting new patients.
The Brief
CHESTER, Pa. - Crozer Health System’s parent company, Prospect Medical Holdings, Inc., declared Chapter 11 bankruptcy.
A current patient’s family tells FOX 29 Crozer-Chester Medical Center is no longer accepting new patients and experiencing impacts to its ambulance service and hospital overcrowding. A spokesperson for the hospital denies that claim, telling FOX 29 they are accepting new patients and not diverting patients.
What they're saying:
Delaware County state and county leaders expressed deep frustration and disappointment, but say they’re not surprised after years of mismanagement and disregard for public health.
In a joint statement, they said the bankruptcy leaves the most vulnerable members of the community—patients, families and frontline healthcare workers—at risk.
As the county’s only trauma and burn center, community members in Upland remain hopeful the hospital will find a way to resolve the financial crisis.
Related
Crozer Health is home to Delaware County's only trauma and burn center, and new concerns have emerged after its parent company, Prospect Medical Holdings, declared Chapter 11 bankruptcy.
"It’s easy access service rather than going a far distance on local hospitals. This is the closest to where I live anyway," said Bruce "Monk" Foreman of Chester.
"My mother was recently at Crozer Hospital within the last probably four months and she did receive wonderful health care. I mean I have to say everybody there was great, but we do know that the hospital has been in financial difficulty for a very long time," said Debbie Sheeky Kennedy of Upper Chichester.
Meanwhile, Main Line Health is also facing significant financial hurdles.
The health system said it's in part because Medicare and Medicaid reimbursement rates have not kept pace with the costs of care.
As a result, on Wednesday, the health system reduced the size of its workforce 1.5 percent, or fewer than 200 people, primarily focused within its management structure.
"These changes will not impact our ability to provide safe, high quality and equitable care to our patients and the communities we serve," said spokesperson Phil Ellingsworth, Jr., Director, Communications of Main Line Health. "Moving forward, our primary focus will be hiring more clinicians, increasing our ambulatory services, enhancing the patient experience and improving access for all in our community."
The Hospital and Healthsystem Association of Pennsylvania (HPA) said more than half of Pennsylvania’s acute care hospitals are operating at a loss, and they said most recent data from PA Health Care Cost Containment Council suggests a third are experiencing multi-year losses.
"The cost of providing care has skyrocketed while payments have not kept pace. At the same time, hospitals continue to navigate a myriad of challenges that affect health care access, including continuum-wide workforce shortages, outdated regulations, and strained emergency departments that are increasingly serving as safety nets amid underinvestment in community services," said Nicole Stallings, HAP President & CEO. "HAP stands ready to work with policymakers and payors to address the underlying challenges pressuring hospitals and protect Pennsylvanians’ access to care."
Crozer Health's response
Crozer Health sent the following statement to FOX 29 on behalf of its CEO, Tony Esposito:
"We are no different than any other health system with the increase in flu and Covid. However, we have been able to manage patient throughput and not go on divert like our sister hospitals. There are daily multidisciplinary check-ins at both of our hospitals to manage the ED census and hospital bed assignments for efficient patient care and experience. The focus is on accepting and triaging patients, even during the busy winter season.
It was reported that KQT Ambulance Services chose to no longer work with us and we were forced to rely on our EMS fleet to manage patient transports. The situation arose when KQT requested a $150,000 retainer to continue their services. While we value KQT as a long-time partner and made every effort to negotiate, they referred us directly to their lawyer when we sought a resolution. Our administrative and EMS teams quickly mobilized to put a process in place to meet the needs of our patients and ensure continuity of care. It’s unfortunate that certain groups have chosen to take advantage of this situation for their own gain."
The Source: The information in this story is from a Crozer Health System patient’s family, and Crozer Health's CEO Tony Esposito.