On the record · Other

Prospect Medical Holdings

Leonard Green extracted $400M+ through dividend recaps and management fees while hospitals deteriorated. Multiple facilities closed or in crisis 2023-2025. Subject of congressional investigation.

Research depth

Outcomes researched

Reviewed operating findings or a classified operating outcome are available.

Record updated Sept. 4, 2026

Current ownership

Current owner not established

This record does not identify a current owner. That absence is a gap in the record, not a conclusion about ownership.

1 ownership record has an unresolved current/former status.

Ownership and transaction history

Chronology from recorded ownership periods, transactions and reviewed outcome events. Event order does not imply causation.

Jan. 11, 2025

Bankruptcy filedR1

Recorded history

Date not recorded

Ownership period began

Owner: Leonard Green & Partners

Recorded history

What happened under and after ownership

Operating outcome

Operating through distress or restructuring

Filed Chapter 11 in January 2025; hospitals and physicians offices stayed open throughout. Two Pennsylvania hospitals, Crozer-Chester Medical Center and Taylor Hospital, wound down in 2025.

Its larger medical-group network, Prospect Health, was not part of the filing and was sold to Astrana Health for $708 million in July 2025, continuing to serve about 600,000 members.

Founded
1996
Cause
Dividend recapitalization · with sale-leaseback
  • Business Wire (company primary) · 2025 · hospitals and medical centers remained open throughout Chapter 11, uninterrupted patient care, PHP Holdings/Prospect Health medical groups not part of the filing
  • Astrana Health investor relations (SEC 8-K, company primary) · 2025 · acquisition of Prospect Health closed July 1, 2025 for $708 million, ~600,000 members across CA/TX/AZ/RI
  • Delaware County, PA · Crozer-Chester Medical Center and Taylor Hospital wind-down
  • CBS News · Prospect Medical Holdings founded 1996; Leonard Green & Partners owned Prospect from 2010 to 2021 and extracted about $645 million in dividends, including rough
  • WHYY · Leonard Green sold hospital real estate to a REIT, saddling Prospect with about $1.3 billion in lease obligations, then sold its 60% stake to executives Sam Lee

Sources and evidence

Other recorded sources

Public provenance attached to an entity, ownership or bankruptcy record.

  1. R1
    PESP Bankruptcy Tracker 2025

    PESP Bankruptcy Tracker 2025 · Bankruptcy source

    Supports: Bankruptcy filing

What we do not know

These are gaps in the public record, not findings about the organization.

  • No current public ownership assessment has been published.

Help improve this record

Firsthand experience, public sources and corrections can help close the gaps above.