Crozer-Keystone sale to forprofit gets a public hearing
Crozer-Keystone Health System Inc. has scheduled a May 4 hearing before officials of the Pennsylvania Office of Attorney General on the Delaware County organization's sale to Prospect Medical Holdings Inc., according to a legal notice published Friday.
Crozer-Keystone Health System Inc. has scheduled a May 4 hearing before officials of the Pennsylvania Office of Attorney General on the Delaware County organization's sale to Prospect Medical Holdings Inc., according to a legal notice published Friday.
Because Crozer-Keystone is a tax-exempt entity, the sale of its assets to the for-profit Prospect, which is based in Los Angeles and already owns 13 hospitals, must be reviewed by the state officials to ensure that charitable assets are preserved for charitable purposes.
Oral and written testimony will be accepted at that hearing, which is at 3 p.m. in the James E. Clark Education Center Auditorium at Crozer-Chester Medical Center. The address is 1 Medical Center Boulevard, Upland, Pa., 19013.
The attorney general's Charitable Trust and Organizations Section will accept written comments until May 11 at 21 S. 12th Street, 3rd Floor, Philadelphia, Pa., 19107-3603
Additional approvals needed before the sale can be completed include one in Delaware County Orphans' Court, also regarding the transfer of charitable assets.
Crozer and Prospect have not yet disclosed a price for their deal, but Prospect has agreed in its first five years of ownership to spend $100 million on routine capital needs and an additional $100 million for expansion or other improvements.
According to Crozer, no local, non-profit health systems were willing to make that kind of investment.
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