Prospect Medical Holding

What Prospect Medical Holding does

Prospect Medical Holdings, Inc. is a private, Los Angeles-headquartered healthcare management services organization and hospital operator that historically ran 16-18 acute care and behavioral health hospitals, 28 owned or managed medical groups/independent physician associations, and 165+ outpatient centers across California, Connecticut, Pennsylvania, and Rhode Island (with prior New Jersey operations). The company's core operating thesis was the Coordinated Regional Care (CRC) model — a population health management approach integrating affiliated physicians, hospital facilities, and HMO health plan contracts to deliver coordinated care to approximately 600,000 managed members. Its revenue model combined three streams: (1) hospital patient care services at owned acute care and behavioral health facilities; (2) managed care services through Prospect Medical Systems IPAs and medical groups contracting with HMOs; and (3) a Management Services Organization (MSO) providing administrative support (claims processing, credentialing, referral management, contracting, compliance) to affiliated physician groups.

For nearly a decade the company was majority-owned by private equity firm Leonard Green & Partners, which extracted approximately $658 million from the business through sale-leaseback transactions with Medical Properties Trust — a strategy that converted owned real estate into leased obligations and left the operator financially fragile. In January 2025, PMH filed for Chapter 11 bankruptcy in the Northern District of Texas with roughly $3 billion owed to creditors. The Crozer Health system closed in May 2025 (approximately 2,600 layoffs), and Connecticut, Rhode Island, and most Pennsylvania assets have been or are being divested through the bankruptcy estate to nonprofit health systems (Hartford HealthCare, UConn Health, Centurion Foundation) and other acquirers (NOR Healthcare, Chariot Allaire, KQT Aikens). The collapse has triggered state-level regulatory responses — notably Connecticut Senate Bill 196 banning hospital sale-leasebacks from July 2027, parallel California legislation restricting PE influence, and an $18 million Rhode Island loan guarantee to rescue safety-net hospitals.

Name

Prospect Medical Holding

Legal name

Prospect Medical Holdings, Inc.

Website

https://pmh.com

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Prospect Medical Holdings is a Los Angeles-based, PE-backed multi-state hospital operator running acute care, behavioral health, and outpatient facilities serving safety-net populations in California, Connecticut, Pennsylvania, and Rhode Island via a Coordinated Regional Care model. The company filed for Chapter 11 bankruptcy in January 2025 and is actively divesting its hospital footprint.

Ownership category

akta.pro rank

Product category

Hospital Healthcare Services

NAICS

General Medical and Surgical Hospitals (6221), Offices of Physicians (62111)

SIC

Services-Hospitals (8060), Services-Offices & Clinics Of Doctors Of Medicine (8011), Services-Health Services (8000)

akta.pro primary industry

Hospital Shared Services, GPOs & System Support Organizations (HLAFAAAO)

akta.pro secondary industries

Hospital-Owned Physician Networks & Medical Groups (HLAFAAAL), Value-Based Primary Care Organizations (Risk-Bearing) (HLAFAGAF)

Keywords

• Acute care hospitals
• Behavioral health services
• Managed care networks
• Coordinated regional care
• Healthcare management services

Headquarters

HQ city

Los Angeles

HQ country

United States

HQ region

North America

Offices8 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Others, Marketing or Sales

Revenue model

1. Hospital Patient Care Services: Acute care hospital services, emergency care, surgical services, behavioral health, and outpatient services provided at owned hospital facilities
2. Managed Care Services: HMO contracted services through independent physician associations (IPAs) and medical groups managing 500,000+ members with health plans
3. Medical Group Physician Services: Primary and specialty care services through 28 owned or managed medical groups with over 20,000 primary care doctors and specialists

Go-to-market motion2 records

Distribution channels4 records

Marketing channels8 records

Core offering

Prospect Medical Holdings operates a multi-state network of community and acute care hospitals, behavioral health facilities, affiliated medical groups/independent physician associations (IPAs), and outpatient centers. It delivers hospital-based patient care services, managed care administration for HMO members through its 28 owned or managed medical groups, and a Coordinated Regional Care (CRC) population health model that integrates physicians, hospitals, and health plans.

Product overview

Prospect Medical Holdings operates a multi-state hospital network and integrated healthcare delivery system consisting of 16 hospitals across California, Connecticut, Pennsylvania, and Rhode Island, along with affiliated medical groups and outpatient centers. The portfolio includes acute care hospitals, behavioral health facilities, and community hospitals serving underserved populations. Key offerings include the Coordinated Regional Care (CRC) model for population health management, Prospect Medical Systems for managed care operations with over 500,000 members, and a Management Services Organization (MSO) providing administrative support to physician groups. The company also operates specialty networks including CharterCARE Health Partners in Rhode Island, Crozer Health in Pennsylvania, Eastern Connecticut Health Network, Waterbury HEALTH, and Southern California Hospitals. Supporting services include nursing education programs such as the New Graduate RN Residency Program and Nurse Leader Academy, as well as a High Reliability Organization (HRO) initiative for patient safety.

Differentiator

Problem solved

Functional benefit

Products and services

• Acute Care Hospitals General acute care hospitals providing comprehensive medical services including emergency care, surgery, and specialty treatments across California, Connecticut, and Rhode Island.
• Behavioral Health Hospitals Specialized psychiatric and mental health facilities offering inpatient, outpatient, and crisis behavioral health services across multiple states.
• Outpatient Centers Network of 165+ clinics and outpatient facilities providing primary care, specialty care, ambulatory surgery, imaging, rehabilitation, urgent care, and home health/hospice services.
• Medical Groups and Independent Physician Associations (IPAs) 28 owned or managed medical groups and IPAs with over 20,000 primary care doctors and specialists contracting with HMOs to provide managed care services to 500,000+ members.
• Management Services Organization (MSO) Administrative and non-medical support services for physician groups including claims processing, referral management, contracting, network management, case management, and compliance.
• Coordinated Regional Care (CRC) Model Population health management model that coordinates care across physicians, hospitals, and health plans to provide streamlined, personalized care and reduce fragmentation in healthcare delivery.

Quantifiable outcome

• 600,000 managed members served
• +2 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Twelve partnerships are on record, tiered minor and core.

• KQT Aikens Partners 2 (Todd Strine)minorOthers · 10 March 2026Local investor group led by Todd Strine that purchased Springfield Hospital for $1 million from Prospect's bankruptcy estate
• Centurion FoundationcoreStrategic or Co-development Partner · 6 March 2026Nonprofit organization that acquired Roger Williams Medical Center and Our Lady of Fatima Hospital from Prospect's bankruptcy estate for over $100 million in bond financing
• UConn HealthcoreStrategic or Co-development Partner · 1 March 2026State university health system that acquired Waterbury Hospital from Prospect for $13 million with state bonding support of $390 million for capital improvements
• Hartford HealthCarecoreStrategic or Co-development Partner · 1 January 2026Nonprofit health system that acquired Manchester Memorial and Rockville General hospitals from Prospect for $86.1 million with plans to invest $225.7 million
• Connecticut Attorney General William TongminorOthers · 29 December 2025Reached agreement with Hartford HealthCare to protect against rising healthcare costs, limiting cost increases and waiving noncompete clauses as part of Prospect hospital sale
• NOR Healthcare SystemsminorOthers · 1 December 2025Purchased six of Prospect's California hospitals in December, later involved in payment disputes affecting Connecticut hospitals
• Chariot Allaire Partners LLCminorOthers · 1 October 2025Acquired former Crozer-Chester Medical Center for $10 million in bankruptcy auction, planning to reopen as outpatient-focused center
• Yale New Haven Health SystemminorStrategic or Co-development PartnerOriginally agreed to acquire three Prospect hospitals for $435 million but paid $45 million to exit the deal after legal disputes
• CharterCARE Health of Rhode IslandcoreStrategic or Co-development PartnerNonprofit entity now operating Roger Williams Medical Center and Our Lady of Fatima Hospital following Centurion Foundation acquisition
• LA Care Health PlancoreChannel Partner/ Reseller/ DistributorHealth plan partner in transfer program accepting patient transfers to Prospect's safety-net hospitals when other facilities lack emergency capacity
• UCLA Medical CentercoreChannel Partner/ Reseller/ DistributorRegional hospital partner in transfer program when emergency department capacity is exhausted
• Cedars-Sinai Medical CentercoreChannel Partner/ Reseller/ DistributorRegional hospital partner in transfer program when emergency department capacity is exhausted

Scale indicators15 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• HCA Healthcare: Largest US for-profit hospital operator with ~190 hospitals and 2,400+ care sites. Highly comparable to Prospect as a multi-state, for-profit, geographically diversified acute and specialty care operator with employed physician networks and managed care exposure.
• Tenet Healthcare: For-profit hospital operator (52 hospitals) and large USPI ambulatory surgery business. Comparable to Prospect in operating acute care hospitals plus ambulatory/specialty services under an integrated model across multiple states.
• Universal Health Services: For-profit operator of ~400 acute care and behavioral health facilities. Directly comparable on the behavioral health hospital mix (Bellflower, Van Nuys Behavioral Health) and acute care footprint.
• Community Health Systems: For-profit hospital operator with ~70 hospitals concentrated in non-urban and mid-sized markets. Closely comparable in geographic strategy (secondary markets, safety-net exposure) and financial-leverage profile.
• Prime Healthcare Services: For-profit health system operating 45+ hospitals, focused on acquiring distressed community and safety-net hospitals — directly comparable to Prospect's growth playbook of acquiring struggling hospital systems.
• Steward Health Care: PE-backed for-profit hospital operator that filed for Chapter 11 in 2024 after similar sale-leaseback-driven distress. The closest comparable in business model, ownership structure and ultimate trajectory to Prospect.
• Ardent Health Partners: For-profit operator of ~30 acute care hospitals across multiple states with affiliated physician groups. Comparable in multi-state acute care plus employed physician/IPA model.
• Quorum Health: Operator of ~20 non-urban acute care hospitals spun off from Community Health Systems. Comparable in rural/small-metro focus, financial distress profile and recent restructuring history.

Emerging players

• Verity Health System: California-based nonprofit hospital system that underwent bankruptcy in 2018 and was restructured. Comparable geographic footprint (California safety-net hospitals) and similar post-PE-style distress and divestiture trajectory.

Others

• Medical Properties Trust: Hospital-focused REIT that was the sale-leaseback counterparty in Prospect's $658M extraction transactions. Not a competitor but a critical counterparty and enabling party in the financial structure that contributed to Prospect's collapse.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat3 records

Key risks7 records

Key highlights6 records

Customer concentration

• Xtwitter.com/holdingsmedical
• YouTubeyoutube.com/channel/UCKaWcQbblffAuZuz0zWz57Q
• Facebookfacebook.com/ProspectMedicalHoldings
• LinkedInlinkedin.com/company/prospect-medical-group-inc.
• Instagraminstagram.com/prospect_medical

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries10 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Prospect Medical Holding