A federal bankruptcy judge granted Los Angeles-based Prospect Medical Holdings’ motion to abandon two shuttered Pennsylvania properties should efforts to sell the properties fall through, NPR affiliate WHYY reported Oct. 10.
Five things to know:
1. On Oct. 3, Prospect filed a motion to abandon Springfield (Pa.) Hospital and Upland, Pa.-based Crozer-Chester Medical Center, according to the report. Prospect said in the filing that bidders would not agree to a deal unless tax assessments on the properties were reduced.
2. Prospect sought Chapter 11 protection in January and has been working to offload many of its 16 hospitals. Springfield Hospital closed in 2022. Crozer-Chester Medical Center closed on May 2 after unsuccessful efforts to find a buyer for key Crozer Health facilities.
3. Bids for the two hospitals were due Oct. 7, according to the report. The starting bid for Crozer-Chester Medical Center was $7 million and $3 million for Springfield Hospital.
4. An attorney representing Prospect told WHYY they believe the sales can be completed because of the agreement reached in the abandonment order with the taxing authorities.
5. In August, Prospect also received court approval to abandon two other Crozer hospitals — Ridley Park, Pa.-based Taylor Hospital and Drexel Hill, Pa.-based Delaware County Memorial Hospital. Both hospitals have since been sold. Delaware County Memorial Hospital was sold Aug. 14 to Upper Darby School District for $600,000. A group of private investors purchased Taylor Hospitals for $1 million on Sept. 5.
