Prospect Medical Holdings, owners of Crozer Health, has been ordered to put $20 million in escrow for three years of rent and taxes for medical buildings Crozer is leasing in Springfield, writes John George for the Philadelphia Business Journal.
The order came from a Delaware County judge handling a dispute between Prospect Medical and The Foundation for Delaware County.
The Foundation was created out of a 2016 acquisition of the Crozer Keystone Medical System by Prospect Medical.
After the acquisition, the owner of the Springfield properties leased the buildings to the Foundation, which then subleased them to Prospect Medical.
The Foundation fears it could end up paying millions in lease payment and tax obligations if Prospect Medical defaults on the leases.
Prospect Medical said in a statement it has paid the rent in full on the property from 2016 to the present.
“We have made proposals to resolve any and all outstanding property taxes and are awaiting responses,” the statement read.
The current owner of the property, Ventas, claimed it was owed more than $490,000 in back rent and fees and about $1.6 million county, township, and school taxes.
Read more about the ongoing litigation between the Foundation and Prospect Medical Holdings in the Philadelphia Business Journal.
