Crozer sale to ChristianaCare called off

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Christiana Care Health System, Inc. and Prospect Medical Holdings, Inc. have called off an acquisition agreement for Crozer Health.

ChristianaCare and Prospect announced the signing of a Letter of Intent for ChristianaCare to acquire Crozer Health from Prospect on February 1. Crozer Health operates hospitals and   health care centers and is the largest employer in Delaware County, PA.

“Since the signing of the LOI in February, the economic landscape has significantly changed, impacting the ability of the sale to move forward,” two health care organizations stated. “Both organizations worked very hard to reach a final agreement and have significant respect for each other, and remain committed to caring for the health of those in Delaware County.”

The statement did elaborate on the “changing economic landscape” phrase. 

Healthcare organizations are consolidating with Crozer facing competition from Philadelphia-area university hospital systems and ChristianaCare.

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ChristianaCare has offices in the Chadds Ford-Concordville area of Delaware County.

Signs that the deal might be trouble came when an official of a company that purchased the current owner’s real estate said Prospect was indicating that the deal was not moving forward.

Also, Crozer appointed a new CEO who indicated that he will work to turn around operations.

The agreement faced obstacles that included converting for-profit Crozier into the nonprofit structure of ChristianaCare and dealing with the owner of Crozer’s real estate assets.

There were also concerns from Delaware County officials about cuts in services that occurred prior to the acquisition announcement. Crozer officials said staffing issues, rather than financial matters, were to blame for the decisions.

ChristianaCare also bolstered its presence in neighboring  Chester County by purchasing the former Jennersville Hospital from financially troubled Tower Health.

The southern Chester County hospital was closed at the end of 2021. ChristianaCare plans to offer emergency and other services from the hospital campus.

ChristianaCare is Delaware’s largest hospital system.

ChristianaCare has been cautious in its expansion plans. It did not pursue the sale of a financially troubled hospital in neighboring Salem County, NJ, an area with a sizable number of ChristianaCare patients.

it also did not offer to purchase Jennersville Hospital when it was in full operation.

ChristianaCare  did purchase the parent company of Elkton, MD-based Union Hospital.

 

 

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