CHA Partners’s plan to acquire Upland, Pa.-based Crozer Health from Los Angeles-based Prospect Medical Holdings has collapsed, NPR affiliate WHYY reported Oct. 28.
Pennsylvania officials are reportedly exploring asking a judge to place Crozer, a four-hospital system, under receivership.
CHA, which owns five hospitals in New Jersey, signed a letter of intent in August to acquire Crozer. The proposed deal would have involved transitioning Crozer's four hospitals back to nonprofit status, but the organizations failed to reach a definitive agreement for the deal.
It is unclear whether CHA will return to the negotiating table.
Neither organization responded to Becker's request for comment.
With two of Crozer's hospitals closed, Delaware County Memorial Hospital in Drexel Hill and Springfield Hospital, the sale was crucial for the health system's survival — though success remains uncertain, according to the report.
Prospect, a for-profit system, has been trying to sell Crozer for years. Wilmington, Del.-based ChristianaCare also scrapped plans to acquire the system in 2022.
The health system is also facing setbacks in its attempt to sell three Connecticut hospitals to Yale New Haven Health and two Providence, R.I., hospitals to Centurion, an Atlanta-based nonprofit.