ChristianaCare announced on Thursday that its plans to purchase the Delaware County health care system Crozer Health will not go forward.
Representatives at both health care systems would not provide details on why the deal fell through.
The joint press release from the Wilmington-based health care system and Prospect Medical Holdings, which acquired Crozer Health in 2016, only explained the failed sale by stating that “the economic landscape has significantly changed” since the health care groups announced the potential deal in February.
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Hiran Ratnayake, senior communications manager at ChristianaCare, said the health care system could not elaborate further “due to the confidentiality of the negotiations.”
While Crozer Health similarly did not comment directly on why the sale did not go through, Von Crockett, senior vice president of Corporate Development for Prospect Medical, said in a written statement that this agreement to “discontinue talks” was mutual.
Crockett said Crozer Health will move forward by converting to a nonprofit. The Delaware County hospitals were previously a nonprofit group before the for-profit Prospect purchased them in 2016.
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Crockett said this is the first step in stabilizing the health system, which has faced significant financial challenges. A sign of this volatility, Prospect/Crozer had previously announced plans to close behavioral health services in Delaware County, prompting a lawsuit that just settled this past week and ensured these services would remain open.
Earlier in the year, Crozer officials also delivered the hard news that it would be closing the maternity and neonatal intensive care units at Delaware County Memorial Hospital in Drexel Hill, obstetrics often being one of the most financially challenging departments for health care systems.
As Crozer moves forward, Crockett said, “this work will rely on engaging medical staff to help define how the services we offer best meet community needs, as well as other healthcare providers we’ll look to in determining opportunities for affiliation and collaboration.”
“We also will immediately begin to engage our health plan partners, community leaders and regulatory bodies to ensure Crozer Health’s sustainability well into the future,” Crockett said.
ChristianaCare leaders suggested that it will continue to find ways to support Crozer Health moving forward, too.
“We worked hard to reach an agreement for the purchase of Crozer Health, and we are disappointed in this outcome,” said Jennifer Schwartz, chief strategy officer and general counsel at Christiana.
“ChristianaCare very much wants to be a strong partner in Delaware County and in other communities throughout southeastern Pennsylvania,” Schwartz said. “We will continue to explore opportunities to serve the needs of our neighbors.”
ChristianaCare recently purchased Jennersville Hospital in southern Chester County after its previous owner TowerHealth failed to sell the hospital and closed its doors in late 2021.
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Emily Lytle covers Sussex County from the inland towns to the beaches, with a focus on health-related issues. Got a story she should tell? Contact her at elytle@delmarvanow.com or 302-332-0370. Follow her on Twitter at @emily3lytle.
