A nine-month Prospect Medical legal reprieve has been agreed to so that it can find a buyer for Crozer Health, writes John George for Philadelphia Business Journal.
The reprieve is a formal stipulation between The Foundation for Delaware County, Prospect Medical Holdings, and the Pennsylvania Attorney General’s Office. The three parties filed the stipulation with the Delaware County Court of Common Pleas, seeking approval to allow the 270-day pause.
“The Foundation is hopeful that a high quality, nonprofit system or consortium of systems will come forward to acquire a health care system that so many Delaware County residents need and deserve,” it stated in a release.
The nonprofit Foundation filed a preliminary emergency injunction against Prospect Holdings when it announced plans last fall to close Delaware County Memorial Hospital and convert it into an inpatient behavioral healthcare hospital.
The Foundation argued that Prospect’s 2016 purchase agreement to acquire the Crozer Keystone Health System had a requirement that it maintain acute care services at its four hospitals, including DCMH, for 10 years.
In November, the Pennsylvania Attorney General’s Office filed a petition to have Crozer Health and Prospect Medical held in contempt for violating a court order prohibiting them from closing the hospital.
Find out more about the Prospect Medical legal reprieve in the Philadelphia Business Journal.
