Judge Authorizes Prospect to Abandon Two Shuttered Crozer Hospitals if Sales Fail

Tax relief agreements with local authorities aim to clear the way for $7 million, $3 million bids at Friday’s auction.

Overview

U.S. Bankruptcy Judge Stacey Jernigan approved Prospect Medical Holdings’ motion allowing abandonment of Crozer-Chester Medical Center and Springfield Hospital if transactions do not close.
Prospect reported opening bids of $7 million for Crozer-Chester and $3 million for Springfield ahead of an auction scheduled for Friday afternoon.
Prospect said it reached agreements to set property tax assessments at the eventual sale price for this year and next to address bidder concerns.
Some taxing authorities requested wording changes so buyers receive tax benefits only if they sign the stipulated agreement, with certain township approvals still unresolved.
A deed restriction that calls for a continuously open emergency department at the Springfield property remains a complicating factor after the ED’s closure in early 2022.