Upper Darby School District has agreed to buy Delaware County Memorial Hospital from Prospect Medical Holdings for $600,000, writes John George for  Philadelphia Business Journal.

The district has been trying to acquire the property for two years, writes Harold Brubaker for The Philadelphia  Inquirer.

“We need to expand,” said Upper Darby School District Superintendent Daniel P. McGarry. “If it had remained a hospital, we would have fully supported that, but if it was going to go into the hands of somebody else, there’s nobody better than the school district to try to get that property, McGarry said.

Millions of dollars in property tax obligations for Delaware County Memorial will also be converted to unsecured debt under the agreement.

Prospect Medical stated that it also has a potential buyer for Taylor Hospital, but is not yet releasing any details.

The U.S. Bankruptcy Court approved a revised abandonment plan for both hospitals on Monday that would be voided if and when the hospitals are sold.

According to an asset purchase stipulation filed with the court, if the hospitals aren’t sold, Prospect can immediately abandon the properties.

Upper Darby School District had initially offered $2 million for the hospital at Lansdowne and Keystone Avenues, about a quarter mile from the high school.

It intends to tear down the hospital buildings and use the property for future educational needs.

Read more about Upper Darby Township concerns for the Delaware County Memorial Hospital property in the Philadelphia Business Journal.

Read more about Upper Darby School District’s interest in the hospital property in The Philadelphia Inquirer.

Editor’s Note: This post was initially published on DELCO.Today in August 2025.