Prospect Medical Holdings is seeking court approval to dispose of 470,000 patient records and save itself $350,000 a year in annual storage costs, writes John George for Philadelphia Business Journal.
The bankrupt company stated in a filed motion that the storage costs are an “unsustainable burden.”
“These burdensome patient records, while historically maintained in the ordinary course of business, no longer serve an operational purpose and instead, impose significant and continuing costs on the debtors’ estate,” California-based Prospect Medical stated in filings at the U.S. Bankruptcy Court in Texas.
If court approval is given, patients would receive notice to claim the records before they are destroyed.
The records come from Prospect’s closed Pennsylvania hospitals and health care centers.
They include treatment records, reports, test results, referrals, prescriptions, charge capture, and billings to commercial, governmental, and individual payers.
Prospect Medical, parent company of Crozer Health, filed for bankruptcy in January. It started shutting down Crozer Health last spring after being unable to find a buyer for the financially strapped health care system.
A hearing on Prospect Medical’s motion had not yet been scheduled as of Monday afternoon.
Read more about Prospect’s handling of patient records since it declared bankruptcy in the Philadelphia Business Journal.
Editor’s Note: This post was originally published on DELCO Today in January 2026.
