Crozer-Chester Medical Center and Springfield Hospital’s futures unclear three weeks post-bankruptcy auction.
Friday marks three weeks since the bankruptcy auction for Crozer-Chester Medical Center and Springfield Hospital, both located in Delaware County. The current status of the sales remains uncertain as local authorities continue to negotiate tax agreements crucial for finalizing these transactions.
The prospective sales hinge on community authorities agreeing to property tax deals that would set assessments based on the recent auction sale prices— million for Crozer-Chester and million for Springfield. Upland Borough, which encompasses Crozer-Chester, is leading the charge on developing a property tax agreement that it intends to file in court. Borough Council President Christine Peterson expressed optimism about the forthcoming tax stipulation, indicating that council actions would likely favor the proposed agreement once completed.
The Chester Upland School District, integral to the tax resolution process, has yet to issue a statement regarding the negotiations. Should the school district also consent to the tax agreement, Chariot Allaire Partners LLC would proceed with the acquisition of the closed hospital for million. Yoel Polack, principal of Chariot Equities, has been in discussions with local officials about plans for the facility. Although Polack acknowledged a lack of updates as of Thursday, he anticipated providing further clarity soon.
Chariot Allaire’s bid represented a recent increase of million after an auction process in which it emerged as a backup bidder for Crozer-Chester. Both medical facilities are currently owned by Prospect Medical Holdings, which is facing an impending bankruptcy hearing where various critical issues will be discussed, including a lawsuit from Springfield Township aimed at improving safety conditions at the now-closed hospital.
The legal proceedings may be complicated by a temporary injunction issued by Bankruptcy Judge Stacey Jernigan, which currently prevents the township from taking any action against Prospect. Among the many matters scheduled for consideration is a proposed .5 million settlement related to alleged violations concerning advance notice before job losses affecting Crozer employees upon the closures of Crozer-Chester and Taylor Hospital.
Meanwhile, stakeholders in Springfield continue to grapple with a stalemate regarding the tax agreements necessary to ensure the transaction proceeds. Township representatives have expressed concerns about agreeing to tax deals without a clear understanding of the intended use of the properties, emphasizing the importance of aligning with the township’s comprehensive plan.
The Springfield School Board has similarly not yet voted on any proposed tax resolutions, which complicates the overall situation. Remarkably, the school district’s latest bankruptcy court claim stands at .43 million, with future claims likely to diminish significantly under the current proposed abandonment order by Judge Jernigan. If the municipalities are ultimately forced to foreclose on the facilities, recovering any owed funds from Prospect Medical will become significantly more challenging.
In this evolving landscape, it remains essential for all parties to navigate the legal and financial complexities surrounding the impending transfers as local health infrastructure and community resources continue to hang in the balance.
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