Judge gives more time to negotiate on Crozer Health sale

Rep. Leanne Krueger April 1, 2025

Today there was a brief status hearing with the bankruptcy judge in Texas about Crozer Health, but a longer hearing on a proposed Asset Purchase Agreement (a sale of the system) has been moved to Thursday to give the parties more time to negotiate. Last Wednesday, a lawyer for Delaware County told the judge that it was going to be a challenge to reach a deal by April 1 because Prospect Medical Holdings, the California-based hedge fund that owns Crozer, had not provided all the necessary financial info and the terms in the Asset Purchase Agreement were “surprising.” At the time, the judge directed all parties to continue to work toward a deal and directed Prospect’s lawyer to provide the missing information.

I have not yet seen a draft of the deal, but I’m not surprised that Prospect is causing problems again - that has been true for the past three years as they have extracted every resource possible from our health care system. I have repeatedly asked the Attorney General’s office to hold Prospect accountable and will be watching closely when they are back in court on Thursday.

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