Prospect Medical Requests Negotiations With County Over Hospital

By

The emergency department staff at Delaware County Memorial Hospital takes a selfie in fron of the "ED closed" sign
Image via Pete Bannan, Daily Times
The emergency department staff at Delaware County Memorial Hospital takes a selfie in fron of the "ED closed" sign

Prospect Medical Holdings Inc. wants to negotiate with Delaware County over Delaware County Memorial Hospital, according to Delaware County Solicitor William F. Martin.

The request came just as CBS News aired an investigation into Prospect’s finances and the situation at DCMH.

The Dec. 6 CBS report cited a ruling by Rhode Island Attorney General Peter Neronha indicating Prospect owners took out a $1.12 billion loan in 2018, then paid themselves and private equity shareholders a $457 million dividend.

To pay the loan back, Prospect allegedly sold its assets to a healthcare real estate trust, then leased them back.

In Delaware County, that meant $35 million a year in rent had to be paid out of hospital budgets, according to the CBS News report.

Martin said the county won’t close the door to negotiations “but I can assure you that we will not have any illusions about who we’re dealing with.”

In a statement, Prospect Medical said it remains open to working with the county.

A Prospect Crozer statement said in the five years Prospect has owned Crozer Health “it has contributed $1.5 billion to the Crozer Health facilities, patients, employees and the communities we serve.”

Read more about possible Prospect/county negotiations at the Daily Times.

Join Our Community

Never miss a Delaware County story!

"*" indicates required fields

Hidden
DT Yes
This field is for validation purposes and should be left unchanged.
Advertisement