In a significant development for the healthcare landscape in Delaware County, Prospect Medical Holdings has signed a letter of intent to sell Crozer Health to CHA Partners. This transaction marks a crucial step in the ongoing efforts to stabilize and revitalize Crozer Health, which has faced numerous challenges in recent years. The acquisition aims to return Crozer’s facilities to not-for-profit status, a move that aligns with the broader goal of preserving healthcare services and jobs in the communities the health system serves, according to an announcement.
Crozer Health operates four hospitals in Delaware County, Pennsylvania, with a total of 558 beds and employs 4,429 staff members, including 1,116 providers, according to its website. Despite its critical role as the main EMS provider and primary trauma center in the region, Crozer Health has struggled, leading to the closure of two hospitals: Delaware County Memorial and Springfield.
“This action formally begins the process necessary to complete a definitive agreement for the acquisition of Crozer Health,” the two parties said.
CHA Partners, a New Jersey-based real estate company founded in 2008, has a history of acquiring and successfully turning around distressed hospitals. The company owns and operates several ambulatory surgery centers, medical office buildings, and assisted living facilities. As part of this transaction, CHA will collaborate with Healthcare Preferred Partners (HCPP), known for its expertise in managing health systems and engineering successful turnarounds in underserved urban areas.
The acquisition process will involve due diligence, regulatory reviews, and obtaining necessary approvals. While the sale represents a positive step towards securing Crozer Health’s future, the path to revitalization remains complex. The previous attempt to sell Crozer to ChristianaCare Health System fell through in 2022, highlighting the challenges involved. Nevertheless, the commitment from CHA to restore Crozer to nonprofit status appears to meet the requirements set by a court-approved agreement with the Pennsylvania Attorney General’s Office.
