Prospect Medical Holdings

Prospect Medical Holdings (Santa Ana, CA) signed a definitive agreement to acquire Crozer-Keystone Health System (Springfield, PA). The deal, which includes Crozer-Chester Medical Center (Upland, PA), Delaware County Memorial Hospital (Drexel Hills, PA), Springfield Hospital (Springfield, PA), Taylor Hospital (Ridley Park, PA), and Community Hospital (Chester, PA), will convert nonprofit Crozer-Keystone to a for-profit system. It will also mark Prospect Medical Holdings’ entry in Pennsylvania. It currently owns 13 hospitals in California, Texas, and Rhode Island. The deal must be approved by the state attorney general. Prospect pledged $200 million in capital toward Crozer-Keystone and committed $100 million toward the system’s underfunded pension. Additional terms and an anticipated closing date were not disclosed.

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