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New Jersey–based real estate firm CHA Partners’s bid to acquire Crozer Health has fallen through. Multiple sources familiar with the negotiations confirmed Pennsylvania officials are exploring asking a judge to place Crozer under receivership.
It’s unclear if 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 non-binding letter of intent to purchase the failing four-hospital system in Delaware County from California-based Prospect Medical Holdings.
Prospect informed Pennsylvania officials Monday morning that the deal has fallen through, according to sources familiar with the talks.
When CHA Partners signed a letter of intent to acquire Crozer, it planned to transfer the troubled hospital network back to nonprofit status. With Delaware County Memorial Hospital and Springfield Hospital closed, the deal’s success was a necessity for the rest of the system to survive — albeit far from a guarantee.
Prospect has been trying to offload Crozer for years. Wilmington-based ChristianaCare backed out of negotiations to acquire Crozer in 2022.
The latest attempt at saving Crozer from crushing debt was supposed to bring more stability to the hospital system. In 2023, Prospect agreed to an arrangement 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.