Private equity firm Prospect Medical Holdings has entered into an agreement to sell off Crozer Health to CHA Partners.
Under the deal, Crozer's facilities will regain not-for-profit status, according to an announcement. Crozer has four hospitals in Delaware County in Pennsylvania comprising 558 beds. It boasts 4,429 employees, with 1,116 providers, according to its website.
"This action formally begins the process necessary to complete a definitive agreement for the acquisition of Crozer Health," the two parties said.
CHA has also acquired five hospitals in New Jersey. The organization was formed in 2018 with "the goal of preserving healthcare and jobs in the communities it serves."
It also owns and operates ambulatory surgical centers, medical office buildings and skilled nursing facilities, according to the announcement.
CHA will be working alongside Healthcare Preferred Partners, a company that brings a significant resume of experience in managing health systems, as part of the transaction. HCPP has "a track record of engineering successful turnarounds in underserved urban areas," according to the announcement.
Additional details on the transaction were not disclosed given that it's in nascent stages.
Prospect struck a deal with the Pennsylvania attorney general's office late last year that gave them nine months to find a buyer for Crozer. A planned sale to ChristianaCare Health System fell through in mid-2022.