Crozer-Chester Medical Center, a major component of Prospect Crozer LLC, is licensed for sale only to nonprofit organizations. But now there's a fly in that ointment. (daily time)
Crozer Health System is restarting sales, but its residency program is currently facing criticism, which could reduce its appeal.
Visiting Montgomery County Senior Judge Cheryl Austin on Thursday reconsidered a 270-day stay on the lawsuit over Delaware County Memorial Hospital while Prospect Medical Holdings and Prospect Crozer LLC search for a new buyer. The Pennsylvania Attorney General's Office granted the motion.
In December, Austin denied a stipulation request from Attorney General Michelle Henry to suspend the lawsuit filed by the Delaware County Foundation and CKHS against Prospect in 2022.
The complaint alleges that Prospect violated a 2016 acquisition agreement to keep all hospitals open for at least 10 years when it attempted to close Delaware County Memorial Hospital without prior approval.
But this week, all parties reached an agreement to change the terms of that stay, allowing Mr. Crozer to pursue a sale to a non-profit third party.
Francis M. Sheehan, chairman of the Delaware County Foundation, said he was satisfied with the terms.
“Now that this provision has been signed, Prospect is issuing a request for proposals seeking reputable nonprofit suitors who can partner with our talented staff to rebuild our health care system in desperate need.” “We hope that there are no further hurdles left,” she said. she said.
“We are pleased that the court has issued the order and look forward to continuing to serve the community as this process progresses,” said Lori Bookbinder, spokeswoman for Crozer.
The agreement requires Closer to issue a prospectus and solicit proposals within 20 days for the sale of all of Prospect Closer's assets, and provides a deadline for Closer to submit proposals at least 30 days after issuance of the RFP. .
The prospective buyer must be a nonprofit corporation “organized for the charitable purpose of providing health care services to the general public and granted tax-exempt status,” and jointly provided that it operates the acquisition independently after closing. Bids may be submitted.
The closer will submit the names of interested parties to the court within 50 days, and the potential buyer will complete due diligence and enter into an asset purchase agreement by 140 days.
Mr. Crouser will keep the court informed of this process through monthly reports, and it is expected that the AG's office will continue to communicate with the General Counsel in the Governor's Office regarding the pending sale.
Austin directed the AG to “strictly adhere to all deadlines” set forth in the agreement and immediately report any deviations to the court, but parties may request extensions beyond 270 days if necessary. There is room to do so.
Sheehan noted that as a privately held company, Prospect is not obligated to release its financial records to anyone, and so far it has not. So potential buyers are left unsure of what they're getting into.
“While we already know we have potential suitors and have certainly been receiving questions about when a request for proposal will be issued, we would like to review that request for proposal and confirm the true financial situation. No suitor can come forward until they understand that,''' Sheehan said. “That was really one of the challenges. It's recognized that there are certain large debts, but we don't know the full picture of the closer's financial situation.”
more pressing concerns
Meanwhile, Prospect filed a grievance and emergency motion for an injunction with the Accreditation Council for Graduate Medical Education, alleging that the medical resident's certification was being revoked with little notice.
“In the face of sudden and unwarranted action by the ACGME to cast a cloud over our surgical training, we took action to protect our trauma center and critical services,” Bookbinder said in the filing. I talked about it.
Prospective clients claim that ACGME suddenly announced on January 8 that it would revoke the accreditation just four days later, on January 12.
According to the petition, the City Council said it would send out a notice on the day of the announcement, but the notice — 12 single-spaced pages packed with various content — wasn't actually sent out until Jan. 12. That's what it means.
According to Prospect, the letter contains citations that cover only a small portion of the system's operations, rather than the entire system's functionality, and the ACGME on January 12 halted the revocation until the appeals process takes place in June. He said he agreed to do so. 30.
But the following week, according to the petition, ACGME indicated that if Prospect's appeal is ultimately denied, Crozer's residency status would be retroactive to Jan. 30.
“Residents are aware that the ACGME may retroactively revoke accreditation and that their activities from January 2014 to June 2024 will be deemed unaccredited and wasteful. “I have a legitimate and logical fear that this may happen,” the petition reads. “So they began pursuing alternative placements, which resulted in the closer's departure from the program.”
In his complaint, Dr. Prospect describes this as a “race to the exits” and says at least nine of the 15 surgical residents have indicated they intend to seek other accommodations.
Prospect argues that unlike planned changes to a building, this sudden and “highly accelerated” change by a third party could impair the overall system's ability to function.
Prospect said the issue could cause trauma centers to divert patients to other hospitals or impact other regular hospital services, including emergency room services.
An ACGME spokesperson did not respond to a request for comment, but the petition states that the ACGME is citing urgency because three of its fifth-year final-year students are preparing to graduate this year. There are concerns that they may not be able to do so.
Crozer said each person submitted an affidavit saying they met or exceeded graduation requirements. On the other hand, he argues that decertification could have dire consequences.
“Many of the surgeries performed by Crozer residents are emergent, and even a slight delay in a patient's ability to undergo such surgery can mean the difference between life and death,” the petition warns.
Mr. Sheehan said there was clearly a reason for contacting the accreditor in the first place, and that Mr. Crozer was apparently not sufficiently invested in the program. Losing certification could hurt sales chances, she added.
“I think there's no question that the residency program will make this system more attractive to potential buyers,” Sheehan said. “They're not only providing additional staffing, but they're also providing additional funding for training programs, so certainly there are concerns about the care that can be provided within the system, but also whether it's potentially There are also concerns that it may make the system less attractive to people who are interested in purchasing. “
As of Friday afternoon, no hearing date has been set for the complaint or petition.
