Prospect Medical Seeks Change of Venue in Crozer Takeover Case
A motion filed by the Pennsylvania Attorney General to have the state take over the financially-struggling Crozer Health system should be heard in Philadelphia, not Delaware County, argues Crozer Health parent company Prospect Medical Holdings.
Prospect is seeking a change of venue to have the case heard in the U.S. District Court for the Eastern District of Pennsylvania, writes John George for the Philadelphia Business Journal.
The Pennsylvania Attorney General’s Office filed a complaint in Delaware County Court of Common Pleas in October against Prospect, requesting litigation to allow the state takeover.
Prospect Medical Holdings has not indicated why it wants a change in venue. The Los-Angeles-based for-profit company has called the state’s actions, “ill-considered, and completely unnecessary.”
The state claims Prospect broke the terms of a 2016 purchase agreement for Crozer Health by not maintaining full operations at the Delaware County hospitals.
Under the state’s takeover plan, the management firm FTI Consulting would run Crozer’s facilities, and would be authorized to place Crozer into bankruptcy if necessary.
It would also have Prospect Medical provide funding to support transitioning Crozer Health to a nonprofit entity.
Find out more about Crozer case change of venue request in the Philadelphia Business Journal.
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