by From Delco to Chesco and Montco to Bucks, what about life in the Philly suburbs, do you want WHYY News to cover? Let us know!
New Jersey-based real estate firm CHA Partners’ bid to acquire Crozer Health has failed. Multiple sources familiar with the negotiations have confirmed that officials in Pennsylvania are exploring whether to ask a judge to place Crozer under conservatorship.
It is unclear whether CHA Partners will return to the negotiating table. Prospect did not immediately respond to a request for comment. CHA Partners declined to comment.
In August, CHA Partners signed a nonbinding letter of intent to buy the failing four-hospital system in Delaware County from California-based Prospect Medical Holdings.
Prospect informed officials in Pennsylvania on Monday morning that the deal had collapsed, according to sources familiar with the talks.
When CHA Partners signed a letter of intent to acquire Crozer, it planned to return the struggling hospital network to nonprofit status. With the Delaware County Memorial Hospital and Springfield Hospital closed, the success of the deal was a necessity for the survival of the rest of the system – albeit far from a guarantee.
Prospect has been trying to fire Crozer for years. Wilmington-based ChristianaCare withdrew from negotiations to acquire Crozer in 2022.
The latest attempt to save Crozer from crushing debt was supposed to bring more stability to the hospital system. In 2023, Prospect agreed to a settlement with the Pennsylvania Attorney General’s Office and the Foundation for Delaware County to sell the hospital system. The AG’s office did not respond to a request for comment.
