Prospect Medical Holdings announces deal to sell Delaware County hospitals to not-for-profit consortium
On Friday, Prospect Medical Holdings, the parent company of Crozer Chester and Taylor hospitals, announced a deal to sell the hospitals to a not-for-profit consortium of what the company is calling "health care operators."
This comes just three weeks after Prospect Medical Holdings filed for Chapter 11 bankruptcy.
The sales motion made Friday wrote that Prospect Medical Holdings was preparing for the "potentially unavoidable decision to shut hospital doors and begin turning away patients."
The motion said the proposed sale, which it is working with the state of Pennsylvania on, will allow services to continue for those who rely on Crozer Health for critical medical care.
In October, the Pennsylvania Office of Attorney General said Prospect Medical Holdings mismanaged and diverted more than $450 million to private investors.
"That money lined the pockets of the shareholders when it should have been reinvested in the health care system to keep its doors open," Attorney General Michelle Henry previously said.
CBS News Philadelphia is awaiting comment from the state on this announcement.