Los Angeles-based for-profit hospital operator Prospect Medical Holdings has reached a preliminary deal to acquire Springfield, Pa.-based Crozer-Keystone Health System, according to The Inquirer.
A definitive agreement is expected by Thanksgiving, though additional details of the deal were not available, according to the report.
The financially-strapped five-hospital system said last year it was exploring strategic options, according to The Inquirer. Last year, Crozer-Keystone was downgraded by Moody's to junk bond status due to poor financials — it lost $31.6 million in the first nine months of its 2014 fiscal year. The system was downgraded again this year due to continued weak financial performance, decline in cash and significant unfunded pension liability.
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