Crozer Health sale to CHA Partners takes another step forward
Prospect Medical Holdings and CHA Partners sign a letter of intent; agreement execution targeted for Q2
Definitive agreement execution is targeted for the second quarter of 2022, with the potential for closing to occur in the third quarter of 2022.
Prospect Medical Holdings, Inc. and CHA Partners LLC have signed a letter of intent for CHA to acquire Prospect's wholly-owned subsidiary, Crozer Health. The deal was announced in November 2021, and this latest step brings the two parties closer to finalizing the agreement.
Under the terms of the letter of intent, CHA would acquire all of Crozer Health's assets, including its hospitals, physician practices, and other operations. CHA would also assume all of Crozer Health's liabilities. The purchase price was not disclosed.
The deal is still subject to regulatory approvals and other customary closing conditions. However, the signing of the letter of intent is a significant step forward in the process.
If the deal is finalized, it would mark a major change for Crozer Health. Prospect Medical Holdings has owned Crozer Health since 2016. CHA is a not-for-profit health system based in Boston, Massachusetts.
It is unclear what the sale of Crozer Health to CHA Partners will mean for the health system's employees and patients. CHA has said that it is committed to providing high-quality care to the community and that it will work with Crozer Health's employees to ensure a smooth transition.
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