Unnamed 'consortium' approved by state AG, according to court filings
Prospect Medical Holdings, the California-based company that operates the Crozer Health System, has announced its intent to sell Crozer, including all hospitals, surgical centers and doctor’s offices, to a not-for-profit consortium of healthcare operators, according to information reported in Business Wire.
The proposed sale will support the preservation and continuation of services to all members of the Delaware County communities that rely on Crozer Health for critical medical care.
The health system, which has nearly $2.3 billion in total outstanding obligations, said it couldn’t afford to keep Crozer open past January. Prospect was preparing to close the system before the tentative deal materialized.
The California-based health system secured some interim funds to finance hospital operations while in bankruptcy from a private investment firm last month. However, Prospect’s attorneys told the court Friday that those funds were set to run out at the end of January.
In a bankruptcy filing submitted Friday, Prospect indicated its intent to transfer the hospitals in the Crozer system to an unnamed consortium which the filing indicates was chosen with the help of the Pennsylvania Attorney General’s Office.
The sale agreement will be subject to approval by the Bankruptcy Court and other customary closing conditions. Prospect Holdings will seek Bankruptcy Court approval of the proposed sale at a hearing currently scheduled to occur on February 6, 2025.
Crozer, which previously had four hospitals in the Philadelphia area, now has two: Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park. Springfield Hospital in Springfield and Delaware County Memorial in Upper Darby had closed in recent years.
Prospect had owned the Crozer system since 2016.
