Springfield Township, Pa.-based Crozer Health is hoping to break even by the first quarter of 2024 through the addition of a new ASC partnership after it posted an $87.2 million loss in 2022, according to a July 17 report from the Philadelphia Business Journal.
The health system is also projecting a $72 million loss for fiscal year 2023, which ends Sept. 30. Crozer's parent company, Prospect Medical Holdings, had a tentative agreement to sell Crozer to Wilmington, Del.-based ChristianaCare last year, but the deal fell through after the Delaware system cited "a changing economic landscape."
Now, Crozer is making significant changes and investments in an attempt to recover financially. It is currently finalizing a joint venture deal with Newtown Square, Pa.-based Premier Orthopedics, an operator of three dozen practices in the region, to establish an ASC by converting former hospital rooms for outpatient procedures.
The system has been eliminating inpatient services to cut costs, including turning the Delaware County Memorial Hospital into a behavioral health center, ending emergency care and inpatient admissions due to staffing issues and striking up a partnership with an academic medical center to add cardiothoracic surgery to its service line.
The health system has also ended inpatient services at its Springfield campus but is still going through the regulatory process of relinquishing its 39 licensed beds.