Prospect Medical Holdings has approximately nine months to sell off its struggling four-hospital system Crozer Health under a newly struck agreement between the private equity firm and the Pennsylvania Attorney General’s Office and a local nonprofit.
Prospect, which had acquired Crozer in 2016, had sought to close the system’s Delaware County (PA) Memorial Hospital and convert it into a behavioral health facility after a planned sale of the entire system to ChristianaCare Health System fell through in Aug. 2022, Fierce Healthcare reports.
The closure proved controversial and drew litigation from the Foundation for Delaware County and Attorney General Michelle Henry, who argued that Prospect was required to keep the hospital open until at least 2026 under its original asset purchase agreement.
Still, the hospital was closed by the Pennsylvania Department of Health in November 2022 due to insufficient staffing. Another of Crozer’s facilities, Springfield Hospital, had its inpatient and emergency services suspended in 2021 and later announced to be shifting to an outpatient facility. Read more.
