Posted on 01/14/2025 3:51:10 AM PST by DFG
A healthcare giant that operates 16 hospitals across four states has filed for bankruptcy - with plans to offload several of them.
Prospect Medical Holdings - which also owns 166 clinics across California, Connecticut, Pennsylvania and Rhode Island, and employs 12,600 people - filed for Chapter 11 protection in Texas on Saturday.
The company, which was once an active buyer of struggling hospitals, has debts of more than $400 million.
Prospect said on Saturday that its hospitals, medical centers, clinics and physicians' offices would continue to operate as normal while it restructures.
But, after that, the company will focus exclusively on its facilities in California, where it has seven hospitals.
It plans to sell its operations in the other three states to rival healthcare providers, along with transferring the associated jobs. It has faced problems offloading them in the past.
Two medical centers in Rhode Island - the Roger Williams Medical Center and Our Lady of Fatima Medical Center - are set to be sold to another healthcare company, Prospect confirmed.
But in Pennsylvania, it has yet to find a buyer for facilities including Crozer-Chester Medical Center in Chester and Taylor Hospital in Ridley Park.
There are also three hospitals up for sale in Connecticut, the Waterbury, Manchester Memorial, and Rockville General. A previous buyer is suing Prospect to get out of the deal after alleging they were rundown.
Von Crockett, Prospect's chief executive officer, said: '[The] actions represent an important step forward in our longstanding commitment to best serve the interests of our patients, physicians, employees, and communities.
'Divesting our operations outside of California will ensure that they receive necessary financial support so that the communities that rely on those facilities will maintain continued access to highly coordinated, personalized, and critical healthcare services long into the future.'
(Excerpt) Read more at dailymail.co.uk ...
We have milked the public health scam for all it's worth and now we are dumping the costs of operating these things back on the governments of those states while we continue to milk the dumb as dirt corrupt democratic government of CA since the voters are so stupid that they keep electing even dumber democrats than the last democrat.
“focus exclusively on its facilities in California”
where taxpayers pay for InvaderCare.
Well said.
So true
Prospect was founded in 1996 by a group of physicians in California. In 2010, private equity firm Leonard Green & Partners (LGP) acquired a 61.3% stake in Prospect in a $363 million leveraged buyout.
Amid the hospital system's fiscal troubles, Leonard Green attempted twice to sell the company in 2015 and 2018, but failed due to the company's poor financials. Prospect then initiated a $1.31 billion dividend recapitalization, which allowed it to refinance its debt and landed Leonard Green $658.4 million in dividends and management fees.
In 2019, Prospect sold its California, Connecticut, and Pennsylvania hospital real estate to Medical Properties Trust (MPT), a healthcare real estate investment trust, for $1.386 billion in order to pay off debt. However, this sale-leaseback transaction stuck Prospect's hospitals with triple-net leases, requiring that the hospitals pay rent, property taxes, and maintenance on the properties.
They ran it into the ground and made a lot of money. ✔️
That’s what happens when they are required to give free healthcare to welfare deadbeats who use the hospital inn lieu of having a PCP and illegals.
Maybe you haven’t been paying attention but everyone is paying for invader care in every state, not just California. And if I recall correctly, hospitals can’t turn away anyone for care. Also the Prospect hospitals, at least here in California are Catholic faith based.
I would expect that the reason they are going to operate only in California is because those hospitals are more profitable........not because of illegals.
Unionized Nursing and Medical Staff hospitals .No one wants them and will close .
Unions contracts kill off most hospitals .
Unions and illegal aliens killing off hospitals nationwide. Cost$ of caring for so many illegals without health insurance is spread out among those with health insurance. Last time I was in a major hospital ER I was looking for a sign that said,”English spoken here...”
Is Jim Buden on the Board of Directors?
SO THEY CAN STAY IN CALIF & BURN DOWN?????
true
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