Prospect Medical Holdings does not have an owner in the ordinary sense anymore. The company filed for Chapter 11 bankruptcy on January 11, 2025, and the plan that took effect on March 6, 2026 wiped out the prior equity holders and placed the company in wind-down. Before the filing, Prospect Medical Holdings was owned by Samuel Lee and David Topper through a parent company called Ivy Holdings. Before them, from 2010 to 2021, the private equity firm Leonard Green & Partners held majority control. The hospitals that used to sit under the Prospect name now belong to a mix of new operators, and one major piece of the chain closed for good.
The Current Status After Bankruptcy
The Chapter 11 plan was confirmed on December 15, 2025 and became effective March 6, 2026. Existing equity was extinguished, which is standard when a company’s debts far exceed its assets. Lee and Topper lost their ownership interests on the effective date. What remains of the corporate entity is running through claims reconciliation and wind-down work under a plan administrator, not operating hospitals.
The plan dismantled Prospect in three waves rather than reorganizing it as a going concern: the hospital-side debtors first, the physician network entities after a major sale, and the holding-company debtors last to resolve insurance obligations and legacy liabilities. There is no successor company carrying the Prospect Medical Holdings business forward as a whole.
Who Owned Prospect Before the Bankruptcy
From June 2021 until the January 2025 filing, Prospect Medical Holdings was ultimately owned by Samuel Lee and David Topper. They held their interests through a stacked corporate structure: Chamber, Inc. sat at the top, owning Ivy Holdings, Inc., which owned Ivy Intermediate Holding Inc., which owned Prospect Medical Holdings itself. Lee held 66.67% of Chamber, and Topper held the remaining 33.33% through a family trust.1Rhode Island Office of the Attorney General. Initial Application of Chamber Inc and Ivy Holdings – AG HCA Decision
Lee served as chairman and CEO. He had been with Prospect since 2007, when the company merged with Alta Hospitals, Inc., a chain he co-founded, and he held an MBA from Harvard Business School with more than 30 years of healthcare executive experience. Topper served as a senior executive alongside him. At its peak the system they ran included 17 hospitals and more than 165 outpatient facilities across California, Connecticut, New Jersey, Pennsylvania, and Rhode Island.
Lee and Topper were not new arrivals in 2021. They had been minority shareholders throughout Leonard Green’s period of majority control, and the 2021 transaction moved them from minority to majority ownership of a company already in serious financial trouble.
The Leonard Green Era, 2010 to 2021
Leonard Green & Partners, a Los Angeles-based private equity firm, bought majority control of Prospect Medical Holdings in 2010 for $205 million.2U.S. Senate Committee on the Budget. Letter to Leonard Green and Partners Regarding Prospect Medical Holdings Over the next eleven years, the firm and other shareholders pulled $645 million out of the company through dividends and preferred stock redemptions, with $424 million going to Leonard Green’s shareholders and the rest split among Lee, Topper, and other insiders.3U.S. Senate Committee on the Budget. Profits Over Patients – The Harmful Effects of Private Equity on the U.S. Healthcare System
Leonard Green sold its stake back to Lee and Topper in June 2021 and exited the company. By that point Prospect carried heavy debt, and the hospitals were dealing with labor cuts, reduced capacity, and deferred maintenance.
Medical Properties Trust and the Real Estate
One relationship worth flagging, because it is easy to confuse with ownership of the company: Medical Properties Trust, a publicly traded real estate investment trust, owned most of the physical hospital buildings. Prospect had sold nearly all its hospital real estate to MPT for approximately $1.4 billion and leased the properties back. MPT held roughly $1.6 billion in total assets connected to Prospect across California, Connecticut, and Pennsylvania, along with mortgage loans and equity interests in Prospect’s managed care business.4U.S. Securities and Exchange Commission. Medical Properties Trust Announces Prospect Recapitalization Transactions MPT was Prospect’s landlord, not its owner. During the bankruptcy, MPT funded about $25 million in debtor-in-possession financing and cooperated on selling operations together with the underlying real estate.5Medical Properties Trust, Inc. Medical Properties Trust Inc Reports Second Quarter Results and Update
Where the Hospitals Are Now
The bankruptcy broke the network into regional pieces, each with its own outcome.
Rhode Island
Roger Williams Medical Center and Our Lady of Fatima Hospital were acquired by The Centurion Foundation and transferred to CharterCARE Health of Rhode Island, a newly created nonprofit. The sale closed on March 6, 2026, financed with $101 million in private bonds and an $18 million supplemental reserve fund from the state. CharterCARE now operates with a $330 million annual budget, 2,400 employees, and more than 20 practice locations statewide.6CharterCARE. Sale of Roger Williams Medical Center and Fatima Hospital Now Completed The state’s Attorney General attached more than 80 regulatory conditions to the ownership change.7Rhode Island Office of the Attorney General. Attorney General Imposes Significant Conditions on Proposed Hospital Ownership Change
California
Six California hospitals went to NOR Healthcare Systems Corp. Medical Properties Trust, which still owned the real estate, signed a new master lease with NOR at an initial annual rent of $45 million, matching what Prospect had been scheduled to pay. The transactions were expected to close in 2025, subject to state regulatory approval.8Medical Properties Trust, Inc. Medical Properties Trust Inc Announces New Lease Agreement for Six California Facilities
Pennsylvania
Crozer Health, which included Crozer-Chester Medical Center and Taylor Hospital in Delaware County, found no buyer after an 18-month search. A bankruptcy judge approved the wind-down on April 22, 2025. Emergency departments stopped accepting ambulance patients on April 23, 2025, and walk-in patients were turned away a week later. Some satellite outpatient surgery and imaging centers stayed open temporarily; the core hospitals closed permanently.9Crozer Health. Important Notice for Patients Regarding Hospital Closure
Connecticut
A $435 million deal signed in 2022 to sell Waterbury Hospital, Manchester Hospital, and Rockville General Hospital to Yale New Haven Health collapsed. After lawsuits on both sides, Yale agreed to pay Prospect $45 million to settle, taking none of the three hospitals. The settlement was filed in bankruptcy court in September 2025.
The Physician Network
Prospect’s physician network, a value-based care delivery organization with more than 11,000 providers across Southern California, Texas, Arizona, and Rhode Island, was sold separately to Astrana Health for $708 million. That transaction closed on July 1, 2025 and produced the largest single recovery for creditors in the bankruptcy.10Astrana Health. Astrana Health Announces Closing of Prospect Health Acquisition
The Short Version
Prospect Medical Holdings has no operating owner today. Samuel Lee and David Topper controlled it through Ivy Holdings from 2021 until the January 2025 Chapter 11 filing, and their equity was wiped out when the plan became effective in March 2026. Leonard Green & Partners held majority ownership from 2010 to 2021. The hospitals themselves now sit with new operators, a nonprofit in Rhode Island, NOR Healthcare in California, and Astrana Health for the physician network, while Crozer Health in Pennsylvania closed and the Connecticut hospitals stayed with Prospect through the wind-down after the Yale deal fell apart.