Two Shuttered Delaware County Hospitals Face October Auction Amid Bankruptcy

Two Delaware County hospitals, Crozer Chester Medical Center and Springfield Hospital, previously owned by the bankrupt Prospect Medical Holdings, are scheduled for auction on October 10, with bids due by October 7. These closures are part of a broader shutdown of several Prospect-owned hospitals in the county, which has left only two hospitals serving the area and raised concerns about private equity's role in healthcare. The auction will attract mainly real estate investors who may seek medical tenants to operate the facilities, similar to the recent sale of Taylor Hospital, which local investors plan to reopen with healthcare providers. The Springfield Hospital site includes buildings owned by the real estate investment trust Ventas and is complicated by property tax uncertainties and maintenance lawsuits. Previous sales in the region include Taylor Hospital, sold for $1 million with plans to reestablish emergency services, and Delaware County Memorial Hospital, acquired by the Upper Darby School District. These developments highlight ongoing financial and operational challenges in maintaining healthcare facilities in Delaware County following Prospect Medical Holdings' bankruptcy.