Crozer Health has a new suitor. New Jersey-based CHA Partners has signed a letter of intent with Prospect Medical Holdings

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New Jersey-based CHA Partners is looking to buy Crozer Health.

CHA and Crozer’s parent company, Prospect Medical Holdings, signed a letter of intent, according to an email sent to Crozer employees Wednesday evening.

CHA will work with Healthcare Preferred Partners to transfer the struggling four-hospital system in Delaware County back to nonprofit status, the email said.

“This is a positive step for our physicians, employees, and the communities we serve, as it will help secure Crozer Health’s future as a critical healthcare provider in Delaware County,” Crozer CEO Tony Esposito said in the email.

Founded in 2008, CHA is a real estate company that over the years acquired five struggling hospitals in New Jersey and successfully turned them around.

According to Esposito, CHA owns and operates several ambulatory surgery centers, medical office buildings and assisted living facilities.

“Prospect and Crozer Health leadership will be working closely with CHA and HCPP over the next several months to complete the transfer of ownership,” Esposito said. “This process will involve due diligence, regulatory reviews, and obtaining all necessary approvals.”

Crozer is the region’s main EMS provider. It is also a vital primary trauma center and home to the county’s only burn unit. Despite its importance to Delco’s health care, the system has been crumbling in recent years.

Two of its hospitals — Delaware County Memorial and Springfield — are essentially closed.

In October, Prospect agreed to a deal with the state Attorney General’s Office and the Foundation for Delaware County to sell the distressed hospital system. .

Back in February, the court-approved plan required Prospect to find a nonprofit buyer within 270 days. Prospect kept the process confidential, so it was unclear if there were any legitimate bidders.

WHYY News first reported in July that Prospect had found a prospective buyer, but it came with a catch. The company wanted $100 million — to $500 million from the state to help finance the deal.

CHA doesn’t appear to be a nonprofit, however, its commitment to return Crozer to that status appears to satisfy the court-approved agreement.

“We’re unfamiliar with CHA Partners and looking forward to learning more, and to seeing a formal Agreement of Sale that reveals their plans to turn around the health system for our community,” said Frances Sheehan, president of the Foundation for Delaware County in an emailed statement.

The company’s interest in Crozer does not guarantee a happy ending. The Wilmington-based ChristianaCare backed out of negotiations to acquire Crozer in 2022.