Healthcare DIVE January 13, 2025
Prospect is the second large health system with a history of private equity ownership to declare bankruptcy in the past year.
California-based Prospect Medical Holdings filed for Chapter 11 bankruptcy on Saturday in the U.S. Bankruptcy Court for the Northern District of Texas, following years of financial difficulties and escalating pressure from state and federal regulators over its operating practices.
The health system declared $1 billion to $10 billion in both assets and liabilities and said it had more than 100,000 creditors in its initial court filing.
Prospect, which operates 16 hospitals across California, Connecticut, Pennsylvania and Rhode Island, said it will use the restructuring process to sell hospitals and focus on realigning its portfolio back to its core, home-state...
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