A federal bankruptcy court judge in Texas has approved an agreement between Prospect Medical Holdings and the office of the Pennsylvania Attorney General to appoint FTI Consulting Inc. to oversee the operations of Prospect subsidiary Crozer Health.
FTI Consulting, headquartered in Washington with offices in Wayne and Newtown Square, would be charged with implementing short-term and long-term process improvement and control initiatives within the facilities, as well as managing the daily operations of the Crozer Health system.
It would also be charged with engaging employees and contractors relating to Crozer Health’s operations. That would include entering into, modifying, amending, terminating or renewing any contracts with employees, contractors or vendors.
California-based healthcare company Prospect Medical Holdings, filed for bankruptcy protection Saturday, Feb. 1, according to a statement issued by the company.
The statement indicated that the company intends to focus on its operations in California and Texas while it continues selling its hospital systems in Connecticut, Pennsylvania and Rhode Island.
Crozer, which previously had four hospitals in the Philadelphia area, now has two: Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park. Springfield Hospital in Springfield and Delaware County Memorial in Upper Darby had closed in recent years.
Prospect had owned the Crozer system since 2016.
