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Delaware County Memorial Hospital owners seek to overturn ruling stopping closure

The injunction against the closure remains in place, for now.

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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On Wednesday, Prospect Medical Holdings Inc. and Prospect Crozer LLC filed an appeal of the injunction to stop the closure of Delaware County Memorial Hospital in Commonwealth Court.

It is unknown how that filing will impact discussions that were ordered by Chester County Court of Common Pleas Senior Judge Robert J. Shenkin to occur Thursday.

“The appeal does not affect the preliminary injunction,” said Rocco P. Imperatrice III, the attorney representing the Foundation for Delaware County.

The Foundation for Delaware County and CKHS Inc. filed for the emergency injunction against Prospect Medical and Prospect Crozer to stop the closure of Delaware County Memorial Hospital on Sept. 28. Later, the state attorney general joined the plaintiffs.

On Friday, Shenkin held a four-hour hearing and informed the parties he would be making a decision within the week. On Tuesday, he issued an order granting preliminary injunctive relief, requiring that Delaware County Memorial Hospital continue providing general hospital services to the public.

As part of that, both parties were expected to meet Thursday to discuss the plan to alter services at the Upper Darby facility, then report to the judge.

Delaware County Chair Dr. Monica Taylor, left, and Frances Sheehan, president of the Foundation for Delaware County, address the press after the Friday, Oct. 7, 2022, hearing for an emergency injunction regarding Delaware County Memorial Hospital. (KATHLEEN E. CAREY - DAILY TIMES)
Delaware County Chair Dr. Monica Taylor, left, and Frances Sheehan, president of the Foundation for Delaware County, address the press Friday after a hearing for an emergency injunction regarding Delaware County Memorial Hospital. Neither had a comment Wednesday on the filing of an appeal to the granted injunction. (KATHLEEN E. CAREY – DAILY TIMES)

However, with Wednesday’s appellate court filing, it is uncertain if that meeting will occur.

With Prospect seeking to reverse Shenkin’s order through the appeal, both parties will now be required to submit briefs to the Commonwealth Court and then an argument date will be set for another decision to be rendered. That process could take some time.

Earlier Wednesday, Crozer Health issued a brief statement reading, “We are aware of the ruling and are conferring with our counsel.”

Luke McLoughlin, counsel for Prospect Medical declined to comment; so did Frances Sheehan, president of the Foundation for Delaware County; and also Delaware County Council. Crozer Health officials had no further comment.

On Sept. 21, Crozer Health announced parts of its Stabilization/Transformation Plan that addressed systemwide changes, including its plans for four of its facilities, including County Memorial.

In it, Crozer Health laid out its plans to convert the Upper Darby facility from an acute care hospital to a behavioral health hospital with adult inpatient, geropsychiatric inpatient, acute detox/rehab and crisis unit.

 Last week, Crozer Health Chief Medical Officer Dina F. Capalongo testified in an affidavit that it was her understanding that the Delaware County Memorial Hospital’s emergency room would transition into a separate urgent care center.

In its transformation plan, Crozer Health said all behavioral services would be consolidated at Delaware County Memorial Hospital, with the exception of those at Crozer-Chester Medical Center in Upland.

It identified March as the time when the transfer of services would be complete.

Also on Sept. 21, Crozer Health CEO Anthony Esposito told the hospital’s 334 employees they would be receiving layoff notices.

Tony Esposito, CEO of Crozer Health. (COURTESY OF CROZER HEALTH)
Courtesy of Crozer Health
Tony Esposito, CEO of Crozer Health. (COURTESY OF CROZER HEALTH)

He noted they would be offered positions elsewhere in the Crozer Health system, as well as receiving retention bonuses from $2,500 to $20,000. He said there are approximately 600 open positions at Crozer Health.

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