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Prospect Medical Holdings to pay $300M for Crozer-Keystone

Prospect Medical Holdings, a for-profit hospital operator based in Los Angeles, will pay $300 million to acquire Springfield, Pa.-based Crozer-Keystone Health System, according to The Philadelphia Inquirer.

The purchase price was included in a petition filed Friday in Delaware County Orphans' Court. The document did not include a net purchase price after a series of deductions are made, including up to $120 million to cover Crozer-Keystone's outstanding pension liability.

All money left over after the deductions are made will go into the Crozer-Keystone Community Foundation.

Prospect and Crozer-Keystone signed a definitive agreement in January. Under the agreement, Crozer-Keystone hospitals, its physician network and other facilities will become part of the Prospect network. Prospect has committed to keep all five Crozer-Keystone hospitals open and will make capital investments in the health system totaling at least $200 million over the next five years.

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