Medical Properties Trust will invest $1.55 billion in Prospect Medical Holdings, which owns Crozer-Keystone Health System in Delaware County, through a sale-leaseback of the hospital management company’s real estate assets in Pennsylvania, Connecticut and California, writes John George for Philadelphia Business Journal.

Prospect will use the funds to retire the company’s existing term-loan debt and fund future growth. The company will continue to own and operate all its hospitals and ancillary operations, including Delaware County Memorial Hospital in Drexel Hill,  along with its Rhode Island joint venture.

“This transaction allows us to unlock the value of those assets and focus our efforts on our core business – operating hospitals and implementing our coordinated-regional-care population health model,” said Samuel S. Lee, Prospect’s chairman and CEO.

The transaction is expected to close in the second half of 2019, subject to customary closing conditions. Prospect’s properties in Rhode Island, New Jersey, and Texas are not included in the transaction.

Medical Properties Trust entered into a separate $145 million sale-leaseback deal with Saint Luke’s Health System, which operates seven community hospitals in Kansas City, Mo., region.

Read more about the cash infusion deal here.

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