Prospect Medical Holdings, a for-profit hospital chain based in Los Angeles, has bought bankrupt East Orange (N.J.) General Hospital.
Under the deal, Prospect agreed to maintain East Orange General as a hospital for at least five years. The hospital chain also agreed to invest $52 million in capital improvements by 2021.
East Orange General has been struggling financially for years. In 2014, it was losing about $1.1 million a month. Although the hospital reduced those losses, it filed for Chapter 11 bankruptcy last November to address its deteriorating cash position.
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