Prospect Medical Holdings submitted an emergency bankruptcy motion last week, stating it plans to abandon Crozer-Chester Medical Center and Springfield Hospital in Delaware County unless local authorities meet its property tax demands, writes Harold Brubaker for The Philadelphia Inquirer.
The California for-profit filed for bankruptcy in January. Some potential buyers have already been identified for the two properties, located in Upland Borough and Springfield Township, formerly part of Crozer Health, the country’s largest health system.
However, the bidders are refusing to close the deal unless the properties’ tax assessments are reduced to match the sale prices.
The filing did not provide details on the bids or how much Prospect owes in taxes.
If U.S. Bankruptcy Judge Stacey Jernigan approves the motion, Prospect Medical Holdings could remove the properties from the case, eliminating further property tax liabilities against the bankruptcy estate. But if the tax authorities refuse its demands, the municipalities and school districts would have to rely on foreclosure and tax sales to recover any owed funds, a process that could take years.
Prospect had previously announced plans to auction the two properties on Oct. 10.
Read more about the emergency bankruptcy motion taking place in Delaware County in The Philadelphia Inquirer.
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