Prospect Medical Gets OK For $45M Yale Health Deal In Ch. 11

By Clara Geoghegan · October 10, 2025, 4:41 PM EDT

A Texas bankruptcy judge Friday approved a $45 million settlement between Yale New Haven Health Services Corp. and Prospect Medical that ends a legal battle over failed hospital sales, as Prospect...

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Bankruptcy Scorecard

Summary

Listing more than $1 billion in debts, California-based hospital operator Prospect Medical Holdings Inc. and several subsidiaries filed a Chapter 11 petition in bankruptcy court in the Northern District of Texas, saying they intend to advance the planned sales of several facilities and refocus on operations in their home state.

Case Number

25-80002

Judge

Stacey G. Jernigan

Venue

U.S. Bankruptcy Court for the Northern District of Texas

Capital Structure

Total Liabilities:

Between $1 billion and $10 billion.

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Related Sections

Case Information

Case Title

Prospect Medical Holdings, Inc.

Case Number

8:25-bk-80002

Court

Texas Northern

Nature of Suit

Date Filed

January 11, 2025

Case Title

Yale New Haven Health Services Corporation v. Prospect Medical Holdings, Inc. et al

Case Number

3:25-cv-00105

Court

Connecticut

Nature of Suit

Contract: Other

Date Filed

January 22, 2025

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