Prospect Medical Holdings has paid $300 million for Delaware County’s Crozer-Keystone Health System with the majority of the proceeds going toward settling the struggling nonprofit’s debt and other liabilities, writes Harold Brubaker for the Philadelphia Inquirer.

The petition filed in Delaware County Orphans’ Court last week did not disclose the final net purchase price after deductions were applied, including $120 million for Crozer’s pension plan which recorded a $185.2 million deficit at the end of March.

Before the transaction is finalized, Orphans’ Court has to approve the sale of the tax-exempt non-profit to for-profit Prospect.

The deal also calls for the retirement of at least $160 million of Crozer’s long-term debt with any leftover funds going to the Crozer-Keystone Community Foundation. This new entity will be formed from the merger of the Crozer Chester Foundation and the Delco Memorial Foundation.

Joshua A. Nemzoff, President of Nemzoff & Co and a mergers and acquisitions adviser to nonprofit health-care organizations, noted that not much will remain after all of Crozer’s bills are paid.

“It’s pretty obvious that the board of trustees, the management of Crozer were very lucky to get this number, because it looks like what they did is they matched the price up to the liability,” he said.

Read more about the purchase in the Philadelphia Inquirer by clicking here.