Crozer-Chester, Springfield Hospitals Can Be Abandoned if Sale Fails

A U.S. Bankruptcy Judge authorized Prospect Medical Holdings today to potentially abandon Crozer-Chester Medical Center and Springfield Hospital in Delaware County, Pennsylvania, if an auction scheduled for later today does not result in a sale.

During a hearing in the Northern District of Texas, Judge Stacey Jernigan granted a motion allowing the abandonment, noting a recent agreement with Delaware County taxing authorities designed to make the properties more appealing to potential buyers. The starting bid for Crozer-Chester Medical Center is $7 million, while Springfield Hospital will open bidding at $3 million. This development raises concerns about healthcare access in a region already impacted by hospital closures.

Attorneys for Prospect explained that bidders had been hesitant without reduced tax assessments. “We believe that we’ll be able to get those sales consummated because of the deal that we’ve struck for the abandonment order here with the taxing authorities,” said Maegan Quejada, representing Prospect Medical Holdings. Prospect filed for bankruptcy in January after closing several hospitals in the region, including Delaware County Memorial Hospital and Taylor Hospital in 2022 and 2023 respectively.

Taxing authorities requested minor wording adjustments to ensure bidders adhere to the tax resolution stipulation. The closure of Crozer-Chester Medical Center previously eliminated the only high-level trauma center in Delaware County, significantly impacting emergency care capabilities. Judge Jernigan expressed optimism that the agreement with taxing authorities would facilitate successful sales.

An auction for the two hospital properties is set to take place later today, and officials will be closely monitoring the outcome to determine the future of these critical healthcare facilities.