Los Angeles-based Prospect Medical Holdings is required to inform potential buyers that its Upland, Pa.-based Crozer Health is for sale under a recent agreement approval, The Philadelphia Inquirer reported Feb. 1.
The agreement, approved by Court of Common Pleas Judge Cheryl Austin, gave Prospect 20 days, or until Feb. 21, to place Crozer on the market. A spokesperson for Prospect also confirmed with Becker's that the timing reported was accurate.
The pool of potential buyers has also been limited under the agreement to only nonprofits, with a litigation pause for nine months over Prospect's 2022 closure of Crozer's Delaware County (Pa.) Memorial Hospital, the publication reported.
"We are pleased the Court has issued the order and we look forward to continuing to serve the community as this process moves forward," a spokesperson for Prospect Medical said in a statement shared with Becker's.
Ms. Austin rejected the initial agreement in December, but has since approved a reworked version that gives Prospect a shorter time frame to get Crozer on the market, the publication reported.
A written agreement had previously been reached in October between Prospect, the Foundation for Delaware County and the Pennsylvania Attorney General's Office, which paused active litigation and gave Prospect a 270-day window to sell Crozer.
Prospect acquired Crozer-Keystone Health System in 2016, which was rebranded to Crozer Health in 2020.
Crozer has four hospitals: Upland-based Crozer-Chester Medical Center; Drexel Hill, Pa.-based Delaware County Memorial Hospital; Springfield (Pa.) Hospital; and Ridley Park, Pa.-based Taylor Hospital. The health system also comprises ambulatory surgery centers, clinics and physician offices.
The Foundation for Delaware County, which is Crozer-Keystone's legal successor, told The Philadelphia Inquirer it's happy to see the attorney general limited Prospect's sale to nonprofit buyers.
"There are no more hurdles remaining in the way of Prospect issuing a request for proposals seeking reputable nonprofit suitors that can work with the excellent staff there to rebuild a desperately needed health system," the foundation told the publication.