Upland, Pa.-based Crozer-Chester Medical Center will reopen under new ownership after closing last spring due to financial distress.
Chariot Equities, real estate investment & development company, and Allaire Health Services finalized their acquisition of the 64-acre Crozer campus after the facility’s closure and bankruptcy prompted a court-supervised auction. The new owners plan to redevelop the site into a “right-sized” acute care hospital and regional ambulatory hub, restoring emergency and inpatient services to Delaware County.
The 300-bed hospital closed May 2 after Los Angeles-based Prospect Medical filed for bankruptcy and failed to reach a deal to keep the hospital open. More than 2,600 employees were laid off when Prospect closed the facility and nearby Taylor Hospital in Ridley Park, Pa., citing failed negotiations with potential buyers, including Philadelphia-based Penn Medicine. The closures drew criticism from state officials, who blamed the system’s private equity owners for years of mismanagement.
Chariot and Allaire’s plan includes a phased redevelopment of the campus. The companies have already invested beyond the $10 million purchase price to support professional services, planning and due diligence. They aim to secure a mission-aligned nonprofit health system operator within six months and aim to open the first phase of services within two years.
“This initiative reflects conviction to align real capital behind a mission to build a healthcare delivery model that benefits all stakeholders — patients, providers and taxpayers alike,” said Yoel Polack, founder and principal of Chariot, said in a Jan. 21 news release shared with Becker’s
Mr. Polack has previously led medical facility conversions in the New York City area. Allaire, which operates 29 facilities across five states — including 11 in Pennsylvania — plans to bring “operational discipline and patient-centered culture” to the Crozer project, according to its president and CEO, Benjamin Kurland.
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