Crozer Update – September 30, 2025
Rep. Leanne Krueger September 30, 2025 | 4:14 PM
On Friday, Prospect Medical Holdings, the hedge fund that forced Crozer Health into bankruptcy earlier this year, scheduled a bankruptcy auction for Crozer-Chester Medical Center and Springfield Hospital. According to the documents filed in court, the deadline to submit a bid for the closed hospitals is Oct. 7. If Prospect receives enough qualified bids, there will be a virtual auction Oct. 10.
The bankruptcy auction came as a surprise since both properties have bids from qualified bidders that Prospect has sat on for months. This auction appears to be a way for Prospect to get the most money possible for the buildings without having to consider who the most responsible buyer would be. One source told me that the sudden auction appears to be Prospect’s tactic to “wash their hands of an asset that all kinds of problems.”
Prospect’s announcement came just a week after Springfield Township went to court to file an injunction against Prospect, the Foundation for Delaware County, the Community YMCA of Eastern Delaware County and Ventas Inc. after citing safety concerns with the parking garage that is still being used by the YMCA at the Springfield Hospital site. This lawsuit impacts both the Healthplex and the childcare center operated by the YMCA at that location and seeks to shut them down immediately.
Yesterday Prospect filed an emergency motion opposing Springfield Township’s request for an injunction. The judge then scheduled an emergency hearing for today. During today’s hearing, the bankruptcy judge granted an automatic stay (essentially a stop-action order) against Springfield Township to prevent them from taking any further action to shut down the YMCA facilities before another hearing on October 14th. She told Springfield Township, the YMCA, the Foundation for Delaware County and Ventas to meet within the next two weeks to try to reach agreements to solve the problem. The judge was concerned that Springfield Township’s actions could endanger a possible sale and told them if they can’t work out an agreement, she will consider ruling on damages against Springfield Township.
In the meantime, there has been another update to the next date for Prospect’s next two bankruptcy hearings. The new hearing dates are scheduled for next Monday, October 6, 2025, at 10:30 am and October 14th at 9:30am. As a reminder, it is not unusual for courts to change hearing dates. As such, I encourage you to continuously check the website Prospect Medical Holdings has created to share information with the public that includes court documents and hearing dates, including a link to watch the upcoming hearings which can be located here: https://cases.omniagentsolutions.com/?clientId=3725 and https://us-courts.webex.com/meet/jerniga
My staff and I will track these hearings and continue to share regular updates on what’s happening at Crozer.