In a move anticipated to bolster health care in Delaware County, Chariot Equities, in partnership with Allaire Health Services, has finished the purchase process of the former Crozer-Chester Medical Center in Upland following its bankruptcy, closure and court-supervised auction, according to a news release.
Chariot intends to restore hospital and emergency services to the dormant site through redevelopment of the campus into a facility that puts patients, providers and community first, the news release said.
The acquisition is a first step in establishing long-term health care access for thousands of Delaware County residents, Chariot said. A timetable indicates that perhaps the facility would reopen within two-and-a-half years.
Crozer-Chester Medical Center was the final, and largest domino, to fall in the Crozer Health collapse at the hands of parent company Prospect Medical Holdings Inc.
The Chariot Equities website lists Yoel Polack as founder and principal and reads: “Chariot Equities is a healthcare real estate investment and development firm established to deliver transformational real estate solutions for underperforming healthcare facilities, with the goal of enhancing level of care and expanding healthcare access to surrounding communities.”
It also reads, “(With a commitment) to support better healthcare through smart and thoughtful real estate. From revitalizing hospital campuses to developing modern ambulatory care facilities, we bring the resources, experience, speed, and flexibility needed to deliver impactful projects.”
The news release continues:
The 64-acre CCMC campus, long a cornerstone of community health care in the region, has remained largely inactive since the suspension of inpatient services, leaving residents vulnerable without local emergency, acute-care, and hospital-based services. The hospital’s closure resulted from a combination of factors, including chronic underinvestment, an oversized facility, and misaligned services.
New ownership is pursuing a right-sized redevelopment strategy informed by market realities and focused on long-term sustainability. In this pursuit, the team has already expended substantial capital for professional resources to advance planning and due diligence, in addition to the $10 million purchase price, underscoring their commitment to the project’s vision and long-term viability.
Chariot aims to finalize an operator agreement with a mission-aligned health system within six months of closing and to open the first phase of essential services within two years thereafter, restoring reliable emergency and inpatient care to Delaware County as quickly and responsibly as possible.
The Emergency Department at Crozer-Chester Medical Center has been quiet since the beginning of May. It’s unclear what it will take to re-outfit and re-populate it and the rest of the hospital. (KATHLEEN E. CAREY – DAILY TIMES)
“Our belief in Delaware County’s future, and the community’s need for sustainable healthcare access, made this an effort worth committing to well before the finish line,” Polack said. “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.”
Chariot is in active dialogue with regional and national not-for-profit health systems regarding an operating partnership and is being represented by Colliers in this process. The team is also engaging with local and state officials as well as community leaders, many of whom have been supportive of the proposed project and active partners in helping make it a reality.
What they’re saying
“The closure of Crozer-Chester Medical Center had a devastating impact on access to medical care for Delaware County residents and we are still feeling the effects across the County,” said state Rep. Leanne Krueger (D-161) in the news release. “This proposal represents a new approach and I am encouraged by their commitment to partnering with a nonprofit operator to restore high-quality healthcare to our community.”
“There is a future for healthcare in Delco that is better than what we left behind,” said Delaware County Councilmember Dr. Monica Taylor, also in the news release. “We need a sustainable, modern, patient-centered health campus, and I’m encouraged by the long-term vision Chariot and Allaire are stepping up to deliver for our residents.”
“Widener University is committed to Chester, Delaware County, and our entire region and we look forward to working with Chariot, and other potential healthcare partners, to enhance health services in our community,” said Stacey Robertson, Widener University president, in the same prepared statement. “Widener educates hundreds of future health professionals every year and we are dedicated to excellent healthcare in our region.”
Bringing to the table
More from the news release:
Chariot Equities brings deep experience in healthcare real estate development, with its founder and principal having successfully led multiple medical facility conversions in the New York City metropolitan area. That expertise will guide redevelopment of the Crozer-Chester Medical Center, ensuring the campus is re-envisioned through the same lens of community development, strategic planning, design excellence, and financial sustainability.
Allaire Health Services brings a proven track record of stabilizing and improving healthcare operations across Pennsylvania and neighboring states. Known for successfully transforming healthcare centers through targeted investment and innovative care strategies, the company currently owns or operates 29 facilities across five states, including 11 in Pennsylvania.
“We’re eager to bring that operational discipline and patient-centered culture to this project,” said Benjamin Kurland, president & CEO of Allaire Health Services. “Our shared goal is to rebuild trust and restore the essential healthcare services this community deserves. We look forward to working with the Commonwealth, Delaware County leadership and local residents to establish a facility that is responsive to the needs of the community.”
The background
Prospect Medical Holdings purchased the then-Crozer-Keystone Health System in 2016 for $300 million.
At first, it began to cut services and then Springfield Hospital was closed, followed by Delaware County Memorial Hospital in 2022.
The Foundation for Delaware County contested the DCMH closure in court. However, litigation was suspended to allow Prospect to find a new owner for Crozer Health.
In October 2024, then-state Attorney General Michelle Henry filed suit against Prospect Medical for “years of mismanagement, corporate looting and the neglect of the hospital system, its patients and its staff.”
On Jan. 11, Prospect filed for Chapter 11 bankruptcy for most of its properties outside of California, including Crozer Health. It was then that FTI Consulting was appointed receiver.
At the beginning of March, Prospect began a series of notifying the court that it didn’t have enough money to maintain operations at Crozer Health and saying that without money it would have to close.
Various entities, including Delaware County, the foundation, Pennsylvania and Penn Medicine offered and provided funds at the differing deadlines.
In the end, it was never enough and in less than 10 years, Prospect closed all four hospitals in the Crozer Health system.
The foundation provided $20 million to keep Prospect Medical Holdings from closing Crozer-Chester Medical Center and Taylor Hospital throughout their pleas for more money to keep the system open. Eventually, the foundation said its pockets weren’t deep enough to keep fronting more money.
Potential buyers came and went before the closure.
In addition to CCMC, Springfield Hospital was up for bid and there is a potential buyer for $3 million, Restorative Health Foundation and Syan Investments; Delaware County Memorial Hospital was purchased by Upper Darby School District and Taylor Hospital was bought by KQT Aikens Partners for $1 million, with the intention of reopening it as a hospital.