ChristianaCare announced Friday morning that it has signed a letter of intent to acquire Crozer Health from Prospect Medical Holdings.
Under the agreement, ChristianaCare will purchase the assets and operations of four Prospect hospitals in the greater Philadelphia area, including:
- Crozer-Chester Medical Center in Upland, Pennsylvania, with 499 certified beds
- Delaware County Memorial Hospital in Drexel Hill, Pennsylvania, with 215 certified beds
- Springfield Hospital in Springfield, Pennsylvania
- Taylor Hospital in Ridley Park, Pennsylvania
The agreement also includes the hospitals’ related businesses, real estate assets, Crozer Health Medical Group and associated assets, ambulatory centers, medical office buildings, physician clinics and ancillary outpatient services.
A purchase price was not shared in the announcement.
“The pandemic has demonstrated the vital importance of working together to meet the clinical needs of the communities we serve,” said Kevin Spiegel, CEO of Crozer Health. “We are excited by the potential to join these two great organizations so that we can continue to provide the high-quality, accessible care that our communities – Delaware County and beyond – rely on.”
While the letter of intent lays the foundation for the purchase, ChristianaCare said it would continue to “engage in further due diligence and negotiation of a definitive agreement.”
According to the health care network, definitive agreement execution is targeted for the second quarter of 2022 with the potential for closing to occur in the second half of 2022.
The agreement is subject to customary regulatory approvals.
Upon the deal’s closing, ChristianaCare will return Crozer Health, with its approximately 4,000 employees, to nonprofit status as part of ChristianaCare.
Crozer Health currently operates as a for-profit entity.
“ChristianaCare and Crozer Health have been serving the people of Northern Delaware, Southeast Pennsylvania and parts of Maryland and New Jersey as neighbors for many years,” said Dr. Janice Nevin, CEO and president of ChristianaCare.
“We welcome this opportunity to explore a closer relationship with an organization that shares our commitment to value and service to the community.”
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