Delaware
Crozer Health in Delaware County to close, leaving patients and employees in limbo
FTI Consulting, which was tasked with shepherding the distressed health system’s finances, issued a statement thanking employees, patients and parties who offered solutions.
“As Court-appointed receiver, we are disappointed an alternative resolution and sale could not be reached,” the receivership said.
Crozer began transitioning operations in an attempt to sustain itself in recent weeks in accordance with FTI’s service line transition plan. Main Line Health raised its hand to absorb Crozer’s OB-GYN services. Taylor moved to axe home care and hospice units as early as June.
“The ‘FTI plan’ was one of recovery and exploration of a possible sale, not closure,” the receivership said.
A bankruptcy hearing related to the closure notices is set for Tuesday afternoon.
‘Disappointed’ Pa. officials seek ‘to hold Prospect accountable’
Representatives from the Pennsylvania Office of Attorney General were heavily involved in sale negotiations. In a statement, spokesperson Brett Hambright said the office was “deeply disappointed” by the closure news.
In the end, office leaders said the “damage inflicted” by Prospect’s former owner, private-equity firm Leonard Green & Partners, “who prioritized their own wealth over the well-being of a community, was too much to overcome.”
The attorney general’s office pledged to continue working through the bankruptcy process to recoup money owed to the Commonwealth “to the greatest extent possible in order to hold Prospect accountable for actions that caused this closure.“
Gov. Josh Shapiro accused Prospect of pillaging the hospitals “for their own personal gain” and committed to working alongside the attorney general in the bankruptcy case.
“And we must ensure this never happens again by passing legislation to get private equity out of the health care business in Pennsylvania,” Shapiro said in a statement.
Crozer is integral to shaping the county’s history and economy. The Delaware County Legislative Delegation said in a statement that they’re “furious.”
“Delaware County legislators, Governor Shapiro’s office, and The Office of the Attorney General have been working night and day for months to stop the hemorrhaging Prospect’s dealings created while finding bridge funding to keep Crozer open under new ownership,” the lawmakers said.
Pennsylvania and Delaware County put up a combined $20 million in taxpayer money in February to give the receiver enough cash to keep Crozer running for at least 30 days.
Prospect first signaled the possible closure of the hospitals when money for payroll ran dry in March. A $7 million cash infusion from the Foundation for Delaware County avoided closure at the time. A civil lawsuit nearly blocked the flow of more cash, but the community nonprofit eventually OK’d another $13 million for hospital payroll and overhead.
Bankruptcy attorneys for Prospect asked for more help for Crozer in April before U.S. bankruptcy Judge Stacey G. C. Jernigan of the Northern District of Texas, requesting another $9 million to prolong negotiations. Penn Medicine and Delaware County answered the call, although they came up $3 million short of Prospect’s request.
Negotiations between Prospect and the unnamed consortium of buyers have been underway ever since. Crozer CEO Tony Esposito stepped down Friday. Greg Williams, president of Prospect’s East Coast operations, assumed Esposito’s role in the interim.
“At a time when the federal government is planning massive cuts to Medicaid and Medicare and when most hospital systems are already in the red due to below-cost reimbursement from those public-payor programs, bailing out Crozer became a problem without a solution,” the delegation said.
Foundation for Delaware County President Frances Sheehan said in a statement that the closure of two more hospitals “will significantly reduce emergency healthcare options.”
“Our maternal health team has been working closely with County Council President Dr. Monica Taylor and healthcare leaders for months,” Sheehan said. “We are grateful to Riddle Hospital, Nemours, and CHOP for planning for a significant increase in births and pediatric care, and to all our region’s health systems for partnering with the Delaware County Health Department to coordinate and implement an emergency plan that our citizens will need now that Crozer Health is closing.”
Editor’s note: The Foundation for Delaware County is a WHYY supporter. WHYY News produces independent, fact-based news content for audiences in Greater Philadelphia, Delaware and South Jersey.
Delaware
Crews respond to kayakers in distress along the Delaware River
Emergency crews responded to kayakers who were in need of help along the Delaware River on Tuesday.
According to the New Hope Eagle Volunteer Fire Company, on Tuesday, March 10, at 3:33 p.m., crews were alerted about a report of at least two kayakers in distress in the area of the Delaware River wing dam.
Officials said that while crews responded, additional calls came in that one person had reached shore, but the second person had drifted downstream and was out of sight in the fast-moving water.
Based on that information, officials said some crews headed for the ramp at Fireman’s Eddy off of Route 29 in Hunterdon County, New Jersey, while another set of crews went to the park near Bowman’s Tower on River Road.
Officials said one person was found with both kayaks on the New Jersey shoreline, and he did not require any help.
The other person was found by crews near a boat ramp, after officials said he had swam to shore.
“With this quick burst of spring-like weather, never underestimate the power of moving water,” officials wrote. “With the recent rain and snowmelt, the river is running high and fast. And the water is still cold! Being in the water draws heat from your body about twenty-five times faster than air of the same temperature. Hypothermia only adds to the dangers this time of year.”
Delaware
New Castle County Council finally votes on data center regulations
Is a data center coming to Delaware City?
A large data center project is in the approval process in New Castle County. County Council is deciding how to regulate them.
New Castle County Council approved regulations on the development of data centers Tuesday night.
They won’t apply to the massive proposed data center complex of Project Washington, which continues to fight through state-level objections.
The County Council meeting was standing room only. The crowd of both construction workers supporting the legislation and community members opposing it spread into the lobby of the Louis Redding City/County Building.
The ordinance requires data centers to have a closed-loop water cooling system to limit its water use and creates a 1,000-foot buffer between data centers and residential areas, with an exception for 500-foot buffers if a development can follow noise regulations. It also defaults to existing county limits on noise and lighting levels.
A unanimously approved amendment from Pike Creek representative Timothy Sheldon clarified that these new regulations count for applications submitted after this gets adopted and approved by County Executive Marcus Henry, unless an existing applicant requests to follow these new regulations.
It passed with 12 ‘yes’ votes, with Councilmember Jea P. Street absent from the vote itself.
This was the only amendment left standing. An amendment from Janet Kilpatrick, representing Hockessin, would have grandfathered existing data centers from the ordinance, clarifying that any pending proposal in the county wouldn’t be affected. Another amendment, from Claymont representative John Cartier, would’ve made the ordinance retroactive to count for Project Washington and others. Both were withdrawn at the meeting in a council compromise.
Project Washington’s plans north of Delaware City kicked local data center dialogue into high gear in 2025. The data center project would include 11 two-story data center buildings surrounded by electrical fields on two large land parcels accessible by Hamburg Road, Governor Lea Road and River Road.
It would be 6 million square feet of data center running 24 hours a day, seven days week.
The project’s developer, Starwood Digital Ventures, pledges job creation and and a colossal injection of tax revenue into the coffers of the county and Colonial School District. They said this will bring about 3,500 construction jobs and retain 700 permanent jobs to keep the facility up and running.
County Council member Dave Carter has spent months drafting the regulations that were voted on during this meeting. This is substitute number three on the original bill from August 2025, including compromises on noise and lighting restrictions. Carter wants sensible data center regulation in the county, and he told Delaware Online/The News Journal in March he thinks Project Washington is a “bad deal” for the state.
He thinks the potential demand on the state’s already strained electrical bid will hurt residents’ bills. He also disputes the developers’ promises on permanent jobs and tax revenue.
“We just have to really be cognizant and thoughtful and make sure that we are ensuring that we protect our communities, and that we manage these things well if they are coming,” Carter said at the meeting.
It hasn’t been an easy sell to the rest of County Council. Council member Janet Kilpatrick, who represents Hockessin, wanted consistent regulations on lighting and noise levels to avoid scaring off potential business. Data centers have sprung up across the country as the highly demanding AI industry exploded in popularity.
“If we don’t have some stability, these people are not going to be able to go through a lender to get money, and so that means that they leave, and I’m sure that there’s a group of people in this room that would love to see them leave, but that’s not how we build economic development,” she said at the meeting. “Part of what we need, in my mind, in economic development is that we have a stable land use code.”
Although this doesn’t apply to the controversial Project Washington, County Council will still have a say on the re-zoning of half of the project’s land. The County Board of Adjustment will also have to approve its electrical switch station, Culver said.
At the meeting, residents showed up with mainly negative comments for Project Washington. But, members of trade unions showed up in support of the project’s potential to create construction jobs.
Starwood Digital Ventures will continue to move through the approval process with no changes to Project Washington, according to Jim Lamb, who is handling media for the project.
“We’re really happy there’s a consensus within the council and it’s a really great opportunity for the residents of New Castle County,” Lamb said Tuesday night.
Now this goes to County Executive Marcus Henry’s office, who can sign or veto these regulations.
Half of Project Washington’s proposed land still needs a re-zone, which requires council approval. The project was stifled by DNREC, who ruled the proposal’s size, use and backup diesel generators violate the decades-old Coastal Zone Act.
Starwood Digital Ventures disagrees, and filed and appeal, saying the state environmental agency didn’t classify the project correctly and said it “solely focuses on alleged environmental risk and worst-case emissions, and does not fairly weigh or explain these countervailing factors in light of regulating criteria.”
The appeal’s hearing is in Dover and begins on March 24.
Shane Brennan covers Wilmington and other Delaware issues. Reach out with ideas, tips or feedback at slbrennan@delawareonline.com.
Delaware
Coast Guard Responding to Large Barge Fire in Delaware Bay
The U.S. Coast Guard and multiple partner agencies are responding to a barge fire in Delaware Bay on Tuesday after a tug reported that the vessel it was towing had caught fire.
According to the Coast Guard, watchstanders at Sector Delaware Bay received a call at approximately 8:20 a.m. from the tug Douglas J, reporting that the barge under tow was on fire. The barge was reportedly carrying scrap metal.
Authorities are towing the burning barge to a position about two miles off Maurice River Cove, New Jersey, in an effort to move the incident away from the main shipping channel while firefighting operations continue.
The Coast Guard has established a safety zone and issued a Broadcast Notice to Mariners as crews work to contain the fire and reduce potential hazards to vessel traffic in the busy port complex. Multiple fire departments have deployed fireboats to assist with suppression efforts.
No injuries have been reported and the cause of the fire remains under investigation.
Responders from Coast Guard Station Philadelphia, Coast Guard Station Cape May, and Coast Guard Air Station Atlantic City have been deployed to assist. Partner agencies on scene include the Wilmington Fire Department, Delaware City Fire Department, Philadelphia Fire Department, New Jersey Office of Emergency Management, and Delaware Emergency Management.
The incident follows another major barge fire in the Delaware Bay region in 2022, when a barge carrying scrap household appliances burned for approximately 26 hours in what officials described as the largest firefighting operation in Delaware state history.
Response operations for the current fire remain ongoing.
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