Delaware
Attorney General Sunday, The Foundation for Delaware County Announce that Crozer Health will Stay Open while Long-Term Restructuring is Pursued
HARRISBURG — Attorney General Dave Sunday and The Foundation for Delaware County announce that, after an 11th hour meeting Sunday in Harrisburg, an agreement has been reached that will keep Crozer Health open for the immediate future while permanent restructuring of the system is solidified.
As the system faced imminent closure, a Texas federal bankruptcy court judge convened a meeting between all parties on Sunday, where Attorney General Sunday emphasized the urgency to reach a deal and maintain accessible healthcare for southeastern Pennsylvanians.
Attorney General Sunday and his senior staff attended the meeting, along with board members and the president of the Foundation for Delaware County, which was formed with the nonprofit assets from the purchase of the Crozer-Keystone Health system to Prospect Medical Holdings in 2016.
“I am pleased that the parties focused on how to move forward on behalf of Pennsylvanians, instead of how we got here, and worked to an agreement after more than six hours of negotiations,” Attorney General Sunday said. “I thank all parties for their good faith negotiations and sacrifices made to make this happen. This work was done on behalf of the thousands of people and families who depend on Crozer Health System for essential services — and the many hardworking professionals who provide that care.
”My office will remain engaged in this process as we work to find a long-term solution.”
The Foundation for Delaware County committed essential funding that remedies immediate shortfalls that would have led to closure of the system, likely in coming days.
The Foundation’s President Frances Sheehan said: “We are encouraged by this outcome and hopeful it will lead to a long-term solution with a nonprofit provider. For three years, we have advocated for the residents of Delaware County, supporting negotiations and exploring every available option to keep the healthcare system from closing. While we cannot sustain an entire health system, we remain committed to ensuring continued access to care.”
Also at the meeting Sunday at the Office of Attorney General’s Harrisburg headquarters were Delaware County government leaders (virtually), and representatives from FTI Consulting, the court-appointed receiver who will oversee management of the hospital for the immediate future, as well as Crozer CEO Anthony Esposito, and representatives from Prospect Medical Holdings.
The Office of Attorney General has been advocating for Pennsylvanians for years, since Prospect’s mismanagement — and eventual bankruptcy — led to closures of facilities and cuts in services. Most recently, the Office of Attorney General filed a civil lawsuit against Prospect and partners, alleging Prospect violated a 2016 purchase agreement and seeking payment of outstanding costs and court-appointment of new management that would rescue the failing system.
”The future of Crozer Health has dominated my first month in office,” Attorney General Sunday said. “And it deserves that full attention, as this system is an asset to the communities it serves and an economic driver for Delaware County.”
We expect to release more details in coming weeks as a permanent solution is pursued.
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Delaware
Delaware Supreme Court upholds reforms to curb ‘DExit’ concerns
This story was produced by Spotlight Delaware as part of a partnership with Delaware Online/The News Journal. For more about Spotlight Delaware, visit www.spotlightdelaware.org.
A Delaware law passed last year in the wake of escalating assaults on the state’s corporate brand shielded powerful company leaders from facing certain lawsuits brought by smaller investors.
What it didn’t do was violate the Delaware Constitution, the state Supreme Court ruled on Friday, Feb. 27.
More than three months after hearing arguments, the justices ruled that the corporate law reform – known as Senate Bill 21 – did not strip Delaware’s prominent Court of Chancery of its constitutional authority to decide when a business deal is fair.
“The General Assembly’s enactment of SB 21 falls within the ‘broad and ample sweep’ of its legislative power,” the justices stated.
The ruling ends a bruising fight in Delaware over when the state’s business court should allow small-time investors to interrogate insider deals struck within companies by founders or other business leaders.
The ruling also averts what could have been an embarrassment for the state’s legal and political establishment had the high court overturned the law.
More than a year ago, Tesla CEO Elon Musk — the world’s richest person — was calling on business leaders to move their companies’ legal homes out of Delaware. Musk had launched the campaign, which became known as “DExit,” after a Delaware Chancery Court judge ruled that he could not accept a multibillion-dollar pay package from Tesla.
Just as the campaign appeared to be gaining a foothold, Gov. Matt Meyer, legislative leaders, and Delaware attorneys who represent corporations threw their collective heft behind SB 21.
They argued then that the legislation amounted to a “course correction” that would bring the state’s business courts back into alignment with rulings from a decade ago. Many also said the bill was needed to pacify executives who were considering following Musk’s calls to move their companies’ legal homes out of Delaware.
In response, a cadre of critics — which included national law professors, pension fund attorneys, and a handful of progressives within the Delaware legislature — derided SB 21 as a “billionaires bill.”
Some also argued that the legislation was the latest in a string of recent changes to Delaware corporate law that have shifted the state away from protecting shareholder rights and toward giving greater deference to powerful executives.
Meyer and others SB 21 supporters rejected those characterizations last year. And on Friday, he celebrated the Supreme Court’s ruling.
In a statement, he said the decision affirms that “Delaware is the gold standard locale for global companies to do business.” He also stated that the number of companies that maintain their legal home in Delaware had increased throughout 2025 despite the DExit campaign.
“In short, SB 21 is working, and I’m glad it will continue to be the law,” Meyer said.
The legal arguments for SB 21
When arguing against SB 21 in front of the Supreme Court last fall, one attorney asserted that the new law removed the Chancery Court’s time-honored and constitutional duty to say what is fair – or equitable – in a business dispute.
The attorney, Gregory Varallo, argued that by removing a shareholders’ ability to sue their company, the law reduced what he described as the immutable power of the Court of Chancery to oversee a “complete system of equity.”
During his arguments, Varallo also offered the justices an unusual acknowledgement, stating that he knew that his stance was unpopular — and that he understood “well the pressures on this court.”
The comments were a likely reference to the consensus of big business groups and the state’s political establishment that believed SB 21 was necessary for Delaware to remain the world’s preeminent corporate domicile.
Following Varallo, Washington, D.C.-based attorney Jonathan C. Bond defended SB 21, in part, by characterizing his opponents arguments as unprecedented. If adopted, he said they would imperil several existing Delaware laws that go back decades.
He also argued that changing the rules of corporate law – as SB 21 did – “is the same as wiping out jurisdiction merely because it makes some plaintiff’s claims harder.”
Also arguing in favor of SB 21 during the hearing was William Savitt, an attorney with the Wachtell, Lipton, Rosen & Katz – among the most prominent corporate law firms in the country.
Last spring, Meyer hired Savitt’s firm to represent the state in the legal defense of SB 21 for a budget rate of $100,000. By comparison, Wachtell Lipton charged Twitter $90 million in 2022 to ferry that company through its arduous, four-month-long acquisition by Elon Musk.
Wachtell’s client list also includes Mark Zuckerberg and other Meta executives and board members, who last summer settled a seven-year-long, multibillion-dollar shareholder lawsuit in the Delaware Chancery Court.
During his arguments on SB 21, Savitt said equity as determined by judges must follow the statutes created by the legislature, and “not displace the law.”
“No natural reading of the words (of the Delaware Constitution) support plaintiff’s position,” he said.
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Delaware
Police identify victim of Wilmington motorcycle crash
What to do if you come across a serious car accident
Here is some information about what to do if you come across a serious car accident.
State police identified 29-year-old Brian Silva of New Castle as the victim of a fatal motorcycle crash in Wilmington.
Silva was riding a Harley-Davidson northbound on Dupont Highway approaching Millside Drive in Wilmington around 3:30 p.m. on Feb. 27 when it collided with the rear of a stopped Lexus at that intersection, police said. Silva was ejected from the motorcycle. He was taken to the hospital, where he died.
Delaware State Police are still investigating this incident, and anyone with information is encouraged to reach out to them or to Delaware Crime Stoppers.
Delaware
When will Delaware warm up? After snow, ice Tuesday, temps will rise
Ever seen a spring peeper peep?
A spring peeper singing in the Millsboro area.
Meteorological winter has ended and we’ve entered spring.
However, there’s still a last winter blast hitting Delaware early this week before a spring warm up hits at the end of the week.
Here’s a look at the Delaware forecast.
Will Delaware see more snow?
After a brisk Monday, March 2 with sunny skies and highs only reaching 35 degrees, there’s a chance of snow after 1 a.m. Tuesday, March 3 with freezing rain after 4 a.m. in New Castle County. Snow and freezing rain are expected before noon Tuesday, March 3. The county may receive less than a half inch of accumulation.
In Kent County and Sussex County, there’s a chance of snow and freezing rain after 1 a.m. Tuesday, March 3.
When will it warm up in Delaware?
It will start feeling like spring as warmer air moves into the First State on Tuesday evening, March 3, but wet weather is coming as well.
Rain is predicted from Tuesday, March 3 through Friday, March 5, but spring-like temperatures will make it bearable. In New Castle County temperatures will range from the mid-50s on Wednesday, March 3 to the 60s on Thursday, March 4 and Friday, March 5. Kent County should see temperatures in the 60s and Sussex County will see 70s during the mid- to later part of the week
What’s the weekend forecast?
Remember when you were daydreaming about warm weather during the polar vortex or blizzard? Well, it is coming next weekend.
The forecast is calling for sunny to partly sunny skies throughout Delaware on Saturday, March 7 and Sunday, March 8. Highs will reach the upper 60s in the north to the low 70s in the south.
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