Prospect Medical Holdings to receive $450K property tax refund from distressed school district

Prospect Medical Holdings, the parent company of Crozer Health, is set to receive a $450,000 settlement from the Chester Upland School District in Chester, Pa, according to a June 27 report from Philadelphia PBS affiliate WHYY. The settlement stems from a 2018 legal dispute over property taxes.

 The company first filed a petition with the Delaware County (Pa.) Court of Common Pleas against the City of Chester Board of Assessment Appeals for incorrectly assessing several properties and denying appeals. The Chester Upland School District intervened in the case as the taxing authority that would be affected by any appeal. Prospect was eventually successful in reducing the value of several of the parcels, so it sought to recoup the money.

This comes as the four-hospital system in Delaware County faces a period of uncertainty over its viability. In April, 2022, the hospital system began quietly reaching out to municipalities, threatening to shut off emergency medical services unless a payment arrangement was met, according to WHYY

WHYY reached out to Kevin Spiegel, Crozer’s chief executive officer, for comment but did not immediately receive a response. The school district also declined comment citing the pending litigation.

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