Crozer-Chester Medical Center and Springfield Hospital’s futures remain unclear three weeks post-bankruptcy auction.
On Friday, three weeks will have passed since the bankruptcy auction for Delaware County’s Crozer-Chester Medical Center and Springfield Hospital, yet it remains unclear how much progress has been made in finalizing the sales. The successful completion of these transactions hinges on local authorities approving tax agreements that would temporarily set property assessments at million for Crozer-Chester Medical Center and million for Springfield Hospital.
Upland Borough, which encompasses a significant portion of Crozer-Chester, is currently drafting a property tax agreement expected to enter the court system. Council President Christine Peterson expressed optimism regarding the council’s forthcoming actions in favor of the stipulation once the agreement is finalized.
The Chester Upland School District has yet to respond to inquiries concerning its stance on the proposed tax resolutions. Should the district also consent to the tax agreements, Chariot Allaire Partners LLC would be poised to acquire the closed safety net hospital for the aforementioned million.
Yoel Polack, principal of Chariot Equities, has been engaged in discussions with local officials and potential healthcare providers about future plans for the hospital. He indicated that he anticipates issuing a comprehensive memo regarding the property details shortly.
Chariot Allaire Partners emerged as the winning bidder for Springfield Hospital following an increase in their bid by million during the auction. Both hospitals are assets of Prospect Medical Holdings, which faces an impending bankruptcy hearing on Tuesday. This session will address several pivotal issues, including a lawsuit from Springfield Township that seeks to compel Prospect to enhance safety conditions at the now-closed hospital.
Bankruptcy Judge Stacey Jernigan previously granted a temporary injunction prohibiting Springfield from taking any actions against California-based Prospect. Additionally, a proposed .5 million settlement regarding a lawsuit filed on behalf of Crozer employees, who allegedly did not receive the legally required 60-day notice prior to job losses, will be under consideration. Federal law mandates such notifications before layoffs.
In Springfield, the winner of the auction is yet to finalize tax agreements necessary for the sale. Officials representing the township have expressed their reluctance to agree to a tax arrangement without comprehensive information regarding the intentions of prospective buyers concerning the property’s future use.
The Springfield School Board must also approve any tax settlements but has yet to vote on resolutions pertinent to the hospital’s tax assessments. The outstanding claim from the Springfield School District currently stands at .43 million in bankruptcy court, but under the recent ruling, its financial recovery is precarious.
If Prospect Medical Holdings ultimately abandons both Springfield and Crozer-Chester, local municipalities would need to foreclose on the properties to retrieve any owed debts. The need for clarity and resolution remains critical as stakeholders await developments in this complex situation.
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