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Crozer sale approved by court

Delaware County Orphans' Court Judge Chad F. Kenney on Tuesday approved the sale of the tax-exempt Crozer-Keystone Health System for $300 million to Prospect Medical Holdings Inc., a court official said.

Delaware County Orphans' Court Judge Chad F. Kenney on Tuesday approved the sale of the tax-exempt Crozer-Keystone Health System for $300 million to Prospect Medical Holdings Inc., a court official said.

Most of the money will go toward Crozer's liabilities, including its $160 mllion in long-term debt and pension obligations, according to a 191-page petition filed June 3

Prospect, which is based in Los Angeles and already has 14 hospitals in California, Texas, Rhode Island, and New Jersey, has promised to spend $200 million sprucing up the financially neglected Crozer facilities in its first five years of ownership.

Private-equity firm Leonard Green & Partners is Prospect's majority owner.

Net proceeds of the sale to Prospect, if any, will go to a new Crozer-Keystone Community Foundation.

It was not immediately clear when the sale is expected to be completed.

hbrubaker@phillynews.com

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@InqBrubaker