The Chapter 11 petition indicates assets and liabilities ranging between $1 billion and $10 billion, with over 100,000 creditors. However, PHP Holdings LLC, its subsidiaries, and medical groups involved in a planned sale to Astrana Health Inc. are excluded from the bankruptcy filing.
Major unsecured creditors include healthcare IT provider Cerner Corp., the states of California and Connecticut, Compass Group, Stryker, law firm Sheppard Mullin Richter & Hampton LLP, Johnson & Johnson, and the IRS.
The company’s operations have faced legal challenges in Connecticut and Pennsylvania, alongside federal scrutiny in Rhode Island. Pennsylvania officials sought court intervention last October to appoint a receiver for the Crozer-Chester Medical Center, accusing Prospect of funneling $457 million to investors from a $1.2 billion sale-leaseback loan secured by hospital real estate.
In Connecticut, Yale New Haven Health filed a lawsuit in May 2023 to withdraw from a $435 million deal to acquire Prospect’s hospitals, citing undisclosed financial troubles. Prospect countersued to enforce the agreement.
