Crozer-Keystone strikes deal with L.A.-based Prospect
Crozer-Keystone Health System signed a definitive agreement to be acquired by for-profit Prospect Medical Holdings Inc. of Los Angeles, the Delaware County organization announced Friday.
Crozer-Keystone Health System signed a definitive agreement to be acquired by for-profit Prospect Medical Holdings Inc. of Los Angeles, the Delaware County organization announced Friday.
Crozer, which operates five hospitals, reached a preliminary deal with Prospect in October.
As part of the deal, Prospect has agreed to invest at least $200 million over the next five years in Crozer facilities, which have been starved of capital investment, according to Moody's Investors Service.
Prospect, which owns 13 hospitals in California, Texas, and Rhode Island, also agreed to provide $100 million for Crozer's pension liability and will pay all benefits to beneficiaries within five years of closing, Crozer said.
The system includes Crozer-Chester Medical Center, Delaware County Memorial Hospital, Taylor Hospital in Ridley Park, Springfield Hospital in Springfield, and Community Hospital in Chester.
The next step is an application for regulatory approval, which will include a review by the Pennsylvania Office of Attorney General, which oversees the transfer of charitable assets to for-profit entities.
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