Crozer Bankruptcy Update
Philly Inquirer reports Prospect wants permission to "abandon" empty DCMH and Taylor properties
Rep. Leanne Krueger July 29, 2025 | 3:58 PM
Yesterday WHYY posted a story about the impact of the Crozer Health system’s closure on increased ambulance and emergency room wait times across the County. I have been advocating for more funding for Riddle Hospital and Mercy Fitzgerald Hospital in this year’s state budget to help them care for the increased number of patients they’re seeing due to Crozer’s closure as we work towards a longer-term solution.
Meanwhile, Prospect Medical Holdings, the California-based hedge fund that forced the Crozer Health system into bankruptcy in January, has put the four closed Crozer Health hospital buildings up for sale and has hired a real estate broker to handle the transactions. While at least some of the buildings have been bid on, I have been hearing complaints that Prospect has not responded to the bids in a timely manner. The only person who has any power to hold Prospect accountable at this point is the judge overseeing the bankruptcy case in Texas.
Today Harold Brubaker at the Philadelphia Inquirer reported that Prospect now wants permission from the judge to “abandon” the buildings at Delaware County Memorial Hospital and Taylor Hospital and filed a motion in court last Friday to get her permission to do so. Prospect apparently thinks that the bids are too low (reportedly $1.25M for DCMH and $575,000 for Taylor, less than their unpaid property taxes) and rather than sell them, Prospect would continue to own the buildings and let them sit in disrepair unless a creditor files to foreclose on them. Prospect plan to argues in favor of this motion in court on Monday. Allowing Prospect to abandon these buildings would be terrible news for Delaware County and would set a dangerous precedent. The motion to abandon the properties does not mention Crozer-Chester Medical Center or Springfield Hospital.
The next bankruptcy hearings are scheduled for next week, on August 4 and August 6. If you want to follow the bankruptcy case more closely, Prospect Medical Holdings created a website with information that includes court documents and hearing dates, including a link to watch the upcoming hearings: https://cases.omniagentsolutions.com/?clientId=3725
We’ll continue to keep you posted in our e-newsletter and on the Crozer Update page on our website at Crozer-Chester Medical Center Updates