Delco Judge Sides with The Foundation for Delaware County in a Dispute with Prospect Medical Holdings

A Delaware County judge has sided with The Foundation for Delaware County in a dispute with Prospect Medical Holdings over leased properties on Crozer Health’s Springfield Campus.
Lamb McErlane partner Rocco P. Imperatrice, III is general counsel for The Foundation for Delaware County. Lamb McErlane attorney Andrew P. Stafford also represents the Foundation.
California-based Prospect Medical is a for-profit hospital management company that owns Crozer Health. The Foundation for Delaware County was created from the $55million in proceeds of Prospect’s Medical’s purchase of Crozer Health when it was known as Crozer-Keystone Health System in 2016.
Imperatrice, stated in court documents that annual rent for Crozer’s Springfield properties is about $5.88 million with yearly taxes currently at $1.6 million — putting the three-year obligation for rent and tax payments an estimated $22.4 million.
Under the court order, Prospect must put into escrow or by other means more than $20million to cover three years of rent and taxes for medical buildings it leases in Springfield. The ruling is part of the ongoing legal battle between Prospect Medical and the foundation which has waged since
Crozer Health in September 2022 announced its intend to close Delaware County Memorial and convert it into a behavioral health hospital, a move the foundation says violate the terms of Prospect Medical purchase agreement.