ChristianaCare to acquire Crozer Health Medical Group

ChristianaCare Health System signed a letter of intent to acquire Crozer Health Medical Group from Prospect Medical Holdings, saying the move is intended to increase access to care and health equity.

With the agreement, ChristianaCare will gain ownership of Crozer Health hospitals' related businesses, real estate assets, ambulatory centers, medical office buildings, physician clinics and ancillary outpatient services, the not-for-profit regional health system said Friday.

"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, ChristianaCare president and CEO, in a news release. "We welcome this opportunity to explore a closer relationship with an organization that shares our commitment to value and service to the community."

The Pennsylvania hospitals being purchased, which are currently associated with Prospect, include the Crozer-Chester Medical Center, Delaware County Memorial Hospital, Springfield Hospital and Taylor Hospital.

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Prospect and ChristianaCare expect to negotiate a definitive agreement and close the transaction later in the year. Once the acquisition is finalized, ChristianaCare plans to return Crozer Health to not-for-profit status.

Crozer Health, which has around 4,000 employees, manages a Level II trauma center along with the Nathan Speare Regional Burn Treatment Center that serves Delaware and its surrounding areas.

Prospect owns and operates 17 hospitals as well as more than 165 clinics and outpatient centers across several states. It is currently entering a number of agreements to sell a portion of its hospitals.

"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, in a news release. "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."