Los Angeles-based Prospect Medical Holdings has shared plans to sell Upland, Pa.-based Crozer Health, including all hospitals, clinics, physician offices and ambulatory surgery centers to a non-profit group of healthcare operators.
The sale aims to "support the preservation and continuation of services" to community members that utilize Crozer Health, according to a Jan. 31 news release.
Prospect sought Chapter 11 protection Jan. 11 and has been working to offload 10 of its 16 hospitals.
The for-profit system initially signed a letter of intent to sell the four-hospital system to CHA Partners, which owns five hospitals in New Jersey, in August 2024. However, that plan collapsed in October.
Prospect's plan to sell Crozer Health to Wilmington, Del.-based ChristianaCare also fell through in August 2022.
"By selling Crozer Health to a group of experienced healthcare operators, the communities in and around Delaware County will continue to access and receive the critical healthcare services they require," Tony Esposito, CEO of Crozer Health, said in the release. "We appreciate the support of the Commonwealth of Pennsylvania, as well as all parties involved, to make this transition possible."
Prospect will seek bankruptcy court approval for the sale at a Feb. 6 sale hearing.