Prospect Medical Holdings looks to abandon shuttered Delco hospitals, avoid paying millions in taxes

The company filed for bankruptcy earlier this year
Delaware County Memorial Hospital
Photo credit KYW Newsradio Staff

DELAWARE COUNTY, Pa. (KYW Newsradio) — Prospect Medical Holdings, the now-bankrupt company that owns several closed hospital buildings in Delaware County, is working to abandon some of its properties and avoid paying tens of millions of dollars in taxes.

Crozer-Chester Medical Center, which had been serving Upland Borough and surrounding communities in Delaware County for generations, closed in early May. Ridley’s Taylor Hospital closed a week prior.

Those who would normally rely on Crozer for heart attacks, strokes, or other serious conditions now have to go to facilities that are farther away, which could lead to dire outcomes for patients.

Now, Prospect is looking to abandon its claim to Taylor Hospital and Delaware County Memorial Hospital.

“It has already abandoned our community, and now this is just seeking legal cover to abandon its claims,” said Delaware County Council Chair Dr. Monica Taylor.

Taylor says if they are allowed to abandon these properties, Prospect would be free from paying more than $25 million in unpaid taxes.

“While the county does need the tax funding from Prospect that’s owed from several years of missing taxes, it’s also a big impact on our school district and our municipalities as well,” Taylor added.

Although not the ideal scenario, Taylor looks at this as a glass-half-full situation.

“Anything that gets rid of Prospect is a good thing, and while it is really hard to see right now, we can really have a bright future for health care in Delaware County, but the sooner we get rid of Prospect, the better.

Early next week, a bankruptcy judge is expected to determine if Prospect can abandon the properties.

KYW reached out to Prospect Medical Holdings but has not yet heard back.

Featured Image Photo Credit: KYW Newsradio Staff