Frankford Hospital’s proposed acquisition of Delaware Valley Medical Center (DVMC) was approved today by the U.S. Bankruptcy Court, announced Roy Powell, president, Frankford Health Care System. The purchase is expected to be completed in March following regulatory approvals.

Frankford and DVMC signed an asset acquisition agreement on Dec. 28, l998. DVMC filed a petition under Chapter 11 of the Bankruptcy Code the next day.

Since the acquisition plan was announced, Frankford has committed to loan DVMC approximately $4 million to cover operating costs, and to pay employees and vendors during the bankruptcy. "These loans," explained Powell, "have ensured that DVMC had the financial resources necessary to continue meeting the healthcare needs of its patients during the transition."

As a result of the acquisition, Frankford will operate DVMC as a third campus, which will be known as Frankford Hospital-Bucks County. "We plan to invest up to $20 million to build the medical center into the provider of choice for area residents and physicians--an achievement our two other campuses have already met," said Powell.

"Moving forward, our challenge is to immediately provide our third campus with the technology, educational programs and administrative support it needs to deliver exceptional patient care," he said.

Frankford’s Torresdale campus has been at capacity for almost 18 months and about 17 percent of the hospital’s patients are from Bucks County. Purchasing DVMC, Powell noted, would allow Frankford to treat those patients closer to home.

Delaware Valley Medical Center is a 200-licensed bed hospital located across from the Oxford Valley Mall in Langhorne, Pa.

Frankford Health Care System, Philadelphia, a member of the Jefferson Health System, serves residents of Northeast Philadelphia and nearby lower Bucks and Montgomery counties. Frankford Hospital is composed of two community teaching hospitals, the Frankford and Torresdale campuses. Frankford Health Care System also includes three additional outpatient sites, 9501 Roosevelt Boulevard; the Medical Plaza, located at Grant Avenue and Roosevelt Boulevard; and the Juniata Medical Plaza in the Juniata Park section of Philadelphia.

Published: 2-24-1999