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Delaware County and foundation go to court to halt closure of Memorial Hospital

Foundation for Delaware County and Delaware County Council file emergency injunction.

The litigation against Prospect Holdings and its subsidiary Crozer Health can proceed as a 270-day freeze on litigation was nixed by a judge. All parties had agreed to the freeze.  (PETE BANNAN - DAILY TIMES)
The litigation against Prospect Holdings and its subsidiary Crozer Health can proceed as a 270-day freeze on litigation was nixed by a judge. All parties had agreed to the freeze. (PETE BANNAN – DAILY TIMES)
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The Foundation for Delaware County and Delaware County Council filed an emergency injunction Wednesday in the Delaware County Court of Common Pleas to temporarily stop the closure of Delaware County Memorial Hospital.

A hearing is scheduled before Judge Barry Dozor on Oct. 7 at 9 a.m.

“Both the County and the Foundation agree that the Sept. 21 Prospect Crozer announcement regarding its intention to close DCMH within 60 days and transition the facility to an outpatient behavioral health center with reduced services and a greatly reduced staff was not only damaging to the public health of County residents, but also not in accordance with the terms of the agreement signed by Prospect,” a statement released by County Council read.

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The Foundation for Delaware County, the county's largest charitable organization, was created from the sale of the Crozer-Keystone Health System to Prospect Medical Holdings on July 1, 2016, with an asset purchase agreement that required the purchaser to maintain acute care services at its four hospitals for at least 10 years.

Council said the foundation holds legal standing to enforce the agreement.

"The foundation is concerned that Prospect’s announcement that DCMH will close within 60 days will create irreparable harm to the community. Should the scheduled hearing result in an issued injunction, the foundation and the county look forward to the opportunity to meet with Prospect officials to determine the best utilization of DCMH for the health and well-being of the citizens of the county," a statement from the Foundation read.

Last week, Crozer Health announced that it would be closing Delaware County Memorial Hospital, including its emergency department and other services, to repurpose it into a behavioral health center, set to open in the spring. At the time, Crozer Health CEO Anthony Esposito said the change and others in the system were needed as the industry is transitioning from inpatient to outpatient needs.

“Closing Delaware County Memorial would be catastrophic for our residents that have depended on its services for generations,” Delaware County Council Chair Dr. Monica Taylor said. “And, over 300 high-quality jobs would be lost due to this hastily announced plan, developed without input from the county. It is an unacceptable course of action by Prospect Crozer, and the county remains committed to ensuring that the public health needs of our residents are a priority over the financial considerations of a for-profit corporation.”

County officials maintain that plan outlined by Prospect Crozer constitutes a public health emergency that would subject the residents of Delaware County to seriously degraded health services, especially those residents in eastern Delaware County.

County officials also expressed concern for the 334 employees impacted by Prospect's decision.

A letter sent by Prospect Crozer to its employees includes a target date of Nov. 26 for layoffs, meaning that many employees may face termination on the Saturday of the Thanksgiving holiday weekend.

The county's statement concluded, "The County and the Foundation continue to support all local leaders in an effort to bring about a positive solution to address Crozer Health’s long-term operational and financial viability."

Comment from Crozer Health was not immediately available.

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