After more than two years of protests, negotiations, and lawsuits over reduced services, there appears to be a buyer for Crozer Health in Delaware County.
CHA Partners, LLC (CHA) announced earlier this month it has entered an agreement to buy Crozer from Prospect Medical Holdings. Crozer would turn back into a nonprofit hospital after six years of serving as a for-profit medical facility. It had previously been a nonprofit for decades.
“We believe this is a positive step for our physicians, employees and the communities we serve, and will help secure Crozer Health’s future as a critical healthcare provider in Delaware County,” said Prospect and Crozer officials.
Crozer’s fate has been up in the air since the COVID pandemic.
Despite receiving $72 million in federal taxpayer dollars for “operational costs,” Crozer reduced services at four hospitals in 2022. Cuts included closing the maternity care and intensive care units at Delaware County Hospital. A crisis center at Crozer-Chester also shut down.
The company asked for more than $330,000 from seven municipalities to use for specialized emergency vehicles to support paramedics on calls. A resolution was eventually reached that led to Delaware County taking over the service.
More problems arose after a plan to sell Crozer to a Delaware-based healthcare system fell through in 2022.
Crozer announced it would shut down Delaware County Hospital and turn it into a mental hospital. The state Department of Health then ordered Crozer to close the hospital’s emergency department (ED) due to lack of staff. And then-Attorney General Josh Shapiro, the Delaware County Council, and the Foundation for Delaware County all pushed to have Crozer fined $100,000 a day if the ED wasn’t reopened. A court ruled it had to remain open.
It also ran into issues paying its bills. A car dealership seized two ambulances due to an outstanding repair bill. Crozer also owed Upland Borough almost $70,000 to have a police officer stationed at a hospital at all times.
Back in February, a Pennsylvania judge ordered the health system to find a buyer this year.
State Sen. Tim Kearney (D-Delaware) isn’t sure CHA is Crozer’s savior.
Saying that CHA’s track record “must be carefully examined,” Kearney called for the state Attorney General’s Office to review the arrangement.
“It is essential that this process is transparent from beginning to end. The public deserves to know the terms and conditions of this deal and how they will ensure adequate and responsible care for our residents,” he said.
Kearney will not support CHA’s planned purchase of Crozer unless there’s proof that it was a reputable buyer. He added the Attorney General’s Office needed more power to analyze transactions involving for profit healthcare systems to protect hospitals and people “from corporate green and mismanagement.”
A spokesperson for Attorney General Michelle Henry did not respond to requests for comment.
CHA declined to comment on the potential for a state investigation into the planned Crozer purchase. A spokesperson told DVJournal the buying process had just started.
Founded in 2008, CHA Partners bought and turned around multiple hospitals in New Jersey.
It maintained a relatively positive impact, but has been embroiled in a legal fight with a community foundation in Salem over one turnaround plan.
CHA bought Salem Medical Center (SMC) in 2019, but dealt with higher costs and lower patient volume. Using $39 million in grants and loans from Salem Health and Wellness Foundation, it expanded SMC’s emergency department and renovated multiple buildings on campus. The hospital was eventually sold to Inspira.
The foundation has accused CHA of refusing to pay between $3 to $4 million in loans and legal fees. Even after most of the loans were forgiven, the foundation claimed it was still owed some cash. A Superior Court judge ruled in favor of the foundation earlier this year.
But CHA Manager Partner Bill Colgan disputed the notion that it shirked its responsibility.
In a letter, he said, “We are proud of the positive impact we have made and remain committed to our mission of revitalizing healthcare facilities and preserving essential services for communities in need.”
