Prospect Medical Holdings to Sell Two Shuttered Pennsylvania Hospitals for $13M

Prospect Medical Holdings, a for-profit healthcare system, has reached tentative agreements to sell two of its closed hospitals in Pennsylvania for a combined $13 million. This development marks a significant turning point in the company's troubled history in Delaware County, potentially bringing closure to years of conflict with state regulators and failed attempts to divest its assets.

Sale Details and Buyers

Chariot Allaire Partners has offered $10 million for Crozer-Chester Medical Center, while a joint bid of $3 million has been made by Restorative Health Foundation and Syan Investments for Springfield Hospital. These proposed sales, detailed in documents filed with the bankruptcy court last week, represent the latest chapter in Prospect's efforts to exit the Pennsylvania market.

Prospect's Tumultuous Tenure in Delaware County

Prospect's involvement in Delaware County's healthcare landscape began in 2016 when it acquired the four-hospital Crozer Health system for $300 million. At the time, Prospect committed to keeping the facilities operational for a decade. However, the company's tenure has been marked by a series of closures and service reductions:

• In 2022, Prospect closed Delaware County Memorial Hospital and ceased inpatient care at Springfield Hospital.
• Following a bankruptcy filing in early 2025, Crozer-Chester Medical Center and Taylor Hospital were shuttered, citing financial insolvency.

These actions prompted legal intervention, including a lawsuit filed by former state attorney general Michelle Henry in 2024, challenging Prospect's management practices.

Impact on Local Healthcare and Economy

The closure of Crozer Health facilities has had profound implications for Delaware County:

• A state of emergency was declared due to the sudden loss of healthcare access, particularly emergency services.
• Thousands of healthcare workers were left unemployed.
• The community faced significant disruptions in medical care availability.

Next Steps and Potential Outcomes

The proposed sales are subject to approval, with parties in Prospect's bankruptcy case having until Monday to object to the terms. U.S. Bankruptcy Judge Stacey Jernigan, overseeing the case, has granted Prospect permission to abandon the two hospitals if buyers cannot be secured.

These developments signal the potential end of Prospect's controversial presence in Delaware County's healthcare system, as the company seeks to divest its remaining assets in the region. The outcome of these sales will likely shape the future of healthcare delivery and access in the area for years to come.