Los Angeles-based Prospect Medical Holdings said it plans to move forward with a $1 million sale of its shuttered Springfield (Pa.) Hospital to KQT Aikens Partners 2 after the original bidder failed to close the transaction.
Prospect, which sought Chapter 11 protection in January 2025, closed Springfield Hospital in 2022. The company received approval in early October 2025 to abandon both Springfield Hospital and its Upland, Pa.-based Crozer-Chester Medical Center, which is also closed, should it not find buyers.
Restorative Health Foundation & Syan Investments was the initial successful bidder for the hospital in October 2025, but refused to complete the purchase despite not having contingencies in its offer, according to a Jan. 16 court document obtained by Becker’s.
“On Dec. 11, 2025, the debtors [Prospect] sent Restorative a letter indicating their intention to terminate the sale to Restorative if Restorative failed to close by Monday, Dec. 15, 2025,” the document said. “Following Restorative’s failure to close the sale, the debtors terminated the sale with notice to Restorative, the committee and [Medical Properties Trust]. Following the termination of the sale to Restorative, the debtors pivoted to a sale to the back-up bidder [KQT Aikens Partners 2] and have focused on consummating the sale as expeditiously as possible.”
Objections must be filed by Jan. 21 regarding the revised sale. Should none be received, the court can enter an approval allowing the sale to immediately proceed, the document said.
Becker’s has reached out to Restorative Health Foundation for comment and will update this story should more information become available. KQT Aikens Partners 2 did not have a comment at this time.
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