At Prospect Medical Holdings, we are proud of the success we’ve achieved through our collaborative model that has enabled us to forge strong partnerships among physicians, hospitals, and other providers, resulting in a coordinated and personalized care experience for our patients.
As we’ve continued to uphold our longstanding commitment to offer the highest quality and affordable care to achieve the best possible outcomes for the patients and communities we serve, Prospect Holdings has also faced a number of recent challenges.
To address these headwinds, Prospect Holdings has implemented operational initiatives to realign its organizational focus outside of California, including pursuing an agreement to sell the Roger Williams Medical Center and Our Lady of Fatima Medical Center in Rhode Island, continuing to engage with key stakeholders outside of Rhode Island, and working with the Commonwealth of Pennsylvania to agree on terms for the divestiture of the Crozer-Chester Medical Center.
By doing so, Prospect Holdings will be able to refocus on its core strength and return to fulfilling its mission of operating community hospitals in California, providing vital care to underserved communities, and promoting patient and physician continuity.
To effectuate the paths forward and ensure continued provision of critical and tailored healthcare, Prospect Holdings and certain of its subsidiaries initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Northern District of Texas.
Chapter 11 is a legal tool that enables companies to restructure their finances or implement agreements while strengthening operations for long-term success. It does not mean that Prospect Holdings is going out of business. Rather, Prospect Holdings is utilizing the Chapter 11 process to facilitate its organizational realignment as expeditiously as possible.
The Chapter 11 proceedings do not include PHP Holdings and its subsidiaries, including Prospect Health Plan, Inc., Prospect Medical Systems, LLC and its affiliated medical groups in California, Arizona, and Texas, Gateway Medical Center, and Foothill Regional Medical Center. Their sale to Astrana Health is still expected close in mid-2025.
During the Chapter 11 proceedings, Prospect Holdings’ hospitals, medical centers, and physicians’ offices will remain open, and patient care and services will continue uninterrupted. Prospect Holdings is continuing to engage with its key stakeholders to finalize necessary funding for the duration of the Chapter 11 process.
Prospect Holdings strongly believes that the actions it is taking represent an important step forward in its longstanding commitment to best serve the interests of its patients, physicians, employees, and communities.
Court filings and other information related to the proceedings are available on a separate website administered by the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/Prospect.
If you have further questions, you can contact Omni representatives:
By phone: Toll-free at (888) 550-3239 or at (818) 510-3746 for calls originating outside of the U.S. or Canada.
By email: ProspectInquiries@OmniAgnt.com
Meaghan Repko / Michael Freitag / Richard M. Goldman
Joele Frank, Wilkinson Brimmer Katcher
PMHMedia@joelefrank.com
212-355-4449