The owner of Chester-based health care provider Crozer-Keystone, Prospect Medical Holdings Inc., is getting a $1.55 billion investment from Medical Properties Trust Inc. through a sale-leaseback of the company’s real estate assets in California, Connecticut and Pennsylvania. Prospect will use the funds to retire the company’s existing term-loan debt.
Prospect will continue to own and operate all its hospitals and ancillary operations in Pennsylvania, New Jersey, as well as California, Connecticut, Texas and its Rhode Island joint venture.
“This transaction allows us to unlock the value of those assets and focus our efforts on our core business – operating hospitals and implementing our Coordinated-Regional-Care population health model,” said Prospect Medical Holdings Chairman and CEO Samuel S. Lee. “In addition to strengthening Prospect financially, having MPT available for long-term capital provides us with a significant and experienced potential source of funding for improvements to our existing facilities as well as for future acquisitions and other growth opportunities.”
The MPT investment is in addition to the $200 million of investments in medical equipment, facility upgrades, and technologies that Prospect has made in its hospitals over the last three years.