Prospect Medical Holdings has filed a motion to drop two of Crozer Health’s closed hospitals from its bankruptcy estate because of insufficient bids for the properties, writes Harold Brubaker for The Philadelphia Inquirer.
The California-based for-profit received a $1.25 million offer for Delaware County Memorial Hospital in Drexel Hill, closed since 2022, and $575,000 for Taylor Hospital in Ridley Park, which closed April 25.
The offers are much less than the property taxes owed on both properties. Prospect indicated in its motion that property tax claims against Delaware County Memorial stand at $19.74 million and $7.67 million at Taylor.
Prospect is the former owner of Crozer Health, which encompassed the two hospitals, along with Crozer-Chester Medical Center and Springfield Hospital. It declared Chapter 11 bankruptcy on Jan. 12, 2025.
It filed a motion in bankruptcy court Friday for approval to abandon the properties.
If the judge approves the motion on Monday, no further liabilities could be assessed against both properties in Prospect’s bankruptcy case; however, a lender would be able to foreclose on the properties.
Upper Darby School District has expressed interest in acquiring Delaware County Memorial, which sits next to Upper Darby High School.
Read more about Prospect Medical’s latest filing for bankruptcy after shuttering other hospitals in The Philadelphia Inquirer.
Editor’s Note: This post was initially published on DELCO Today in July 2025.
