Case filing & court posture: Prospect Medical Holdings, Inc. and its debtor affiliates filed chapter 11 on January 11, 2025 in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (Case No. 25-80002). Dkt. 1 Judge Stacey G.C. Jernigan presides. The debtors operated a multi-state hospital system with acute care facilities in California, Connecticut, Pennsylvania, and Rhode Island, employing approximately 12,500 workers.
Liquidity & financing path: The debtors obtained two DIP facilities: a $90 million ABL facility from eCapital Healthcare Corp. and a $115 million term loan from JMB Capital Partners. Dkt. 48 Interim orders approving both facilities were entered on January 14, 2025. Dkt. 101 Dkt. 102 The debtors' liquidity crisis stemmed from a 2019 sale-leaseback transaction with Medical Properties Trust that created unsustainable lease obligations.
Restructuring outcome: The debtors pursued a dual-track process combining asset sales and plan confirmation. Hospital assets were sold through 363 sales totaling approximately $999 million, including the California system to Astrana Health for $708 million, Connecticut ECHN hospitals to Hartford HealthCare for $86.1 million, and Rhode Island CharterCARE to Centurion Health for $160 million. Pennsylvania Crozer hospitals were abandoned.
Plan effective date & post-confirmation: The Amended Joint Chapter 11 Plan was confirmed on December 15, 2025 as a liquidation with a plan administrator and GUC trust. Dkt. 4230 The plan was confirmed via cramdown over objecting classes. The case remains active in post-confirmation administration as of February 2026.
