Dive Transient:
- Prospect Medical Holdings has tentative offers to promote two of its shuttered hospitals in Pennsylvania — Chester Medical Middle and Springfield Hospital — for a mixed $13 million, in keeping with paperwork filed to chapter courtroom final week.
- Chariot Allaire Companions has provided $10 million for Crozer-Chester Medical Middle, whereas Restorative Well being Basis and Syan Investments collectively have provided $3 million for Springfield Hospital.
- Closing the offers would permit Prospect to lastly rid its palms of failed Crozer Well being, following years of battle with state regulators over its administration practices and failed gross sales makes an attempt. Crozer absolutely shuttered this spring.
Dive Perception:
Prospect Medical Holdings bought Crozer, a then four-hospital well being system, for $300 million in 2016 and pledged to maintain the services open for 10 years. As an alternative, over Prospect’s nine-year tenure, the for-profit well being system closed all 4 hospitals, every time pinning the choice on monetary hardship.
Prospect first closed Delaware County Memorial Hospital and ended inpatient care at Springfield Hospital in 2022. The reductions in providers prompted a lawsuit from former state lawyer basic Michelle Henry in 2024.
When Prospect filed for chapter this winter, it closed Crozer-Chester Medical Middle and Taylor Hospital quickly after, telling the courtroom it had run out of money to maintain the lights on.
Closing Crozer Well being left Delaware County in a state of emergency, because it abruptly upended healthcare entry, together with the supply of emergency providers, and left 1000’s with out jobs.
Nonetheless, Prospect owned, and wanted to promote, the underlying actual property. Prospect bought Delaware County Memorial Hospital to the Higher Darby College District in August, and Taylor Hospital to KQT Aikens in September.
The well being system initiated an public sale course of for its different two hospitals final month, setting a $7 million flooring worth for Crozer-Chester and a $3 million flooring worth for Springfield.
Events in Prospect’s chapter case have till Monday to object to the proposed gross sales phrases. U.S. Chapter Choose Stacey Jernigan, who’s overseeing Prospect’s chapter case, has accepted Prospect to abandon the 2 hospitals if Prospect can not discover a purchaser.
