Prospect Medical Ordered to Put Crozer Health Up for Sale by Feb. 21

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The entrance to Delaware County Memorial Hospital
Image via Crozer Health.
A judge OK'd an agreement that requires Prospect Medical to list Crozer Health for sale to a nonprofit.

Prospect Medical Holdings has 20 days, or until Feb. 21, to list Crozer Health for sale to a nonprofit, according to an agreement between the Pennsylvania Attorney General and Prospect, writes Harold Brubaker for The Philadelphia Inquirer.

The agreement was approved Thursday by Court of Common Pleas Judge Cheryl L. Austin.

That means Prospect Medical must notify potential nonprofit buyers that Crozer Health’s for sale.

Industry experts are skeptical, though, that any buyers will come forward willing to assume Crozer’s $155 million mortgage and pension liability.

Under the agreement, litigation over the closing in 2022 of Delaware County Memorial Hospital is suspended for nine months.

One of the litigants, The Foundation for Delaware County, was happy to see the sale limited to nonprofits.

The agreement means “there are no more hurdles remaining in the way of Prospect issuing a Request for Proposals seeking reputable non-profit suitors that can work with the excellent staff there to rebuild a desperately needed health system,” it said in a statement.

Judge Austin had rejected the agreement in December but approved a revised version Thursday that gave Prospect less time to put Crozer up for sale.

Find out more about the state Attorney General’s involvement in the Crozer Health system in The Philadelphia Inquirer.  


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