The new owner of the shuttered Crozer-Chester Medical Center in Delaware County shared what he called an “aspirational” plan to restore healthcare services to the Upland facility at a town hall meeting Tuesday in Chester.
The vision includes reopening of the emergency department, creating a small hospital above the ED, and developing outpatient services — all operated by one or more local nonprofit health systems, Yoel Polack told a standing-room-only crowd of more than 200 at Widener University.
Polack is CEO of Chariot Allaire, the for-profit partnership that paid $10 million for Crozer in January. His group has been talking to all the regional health systems for months and expects soon to begin “a study process with two and hopefully three of the major academic medical centers in the region,” he said.
That is expected to last up to 90 days, he said, “and hopefully at the end of that period, we’re going to be having some outline of partnership with the system.” Polack described his anticipated partner as an institution “you know and trust.”
The entire process could take two or three years after a partnership is formed, he said Polack, whose company is registered in Lakewood, N.J.
He provided no details on how much Chariot Allaire would be willing to invest to attract a health system to the site, where state-led efforts previously failed to save a major safety-net provider for Delaware County that closed last May amid the bankruptcy of its California-based owner, Prospect Medical Holdings Inc.
Chariot Allaire paid relatively little for the 64-acre campus, which gives the company a low cost basis for owning the site. But that doesn’t mean it will be easy to attract a partner at a time of thin to nonexistent profit margins for the region’s health systems.
“It does not seem like there’s an easy and obvious candidate,” said Dan Grauman, managing director at VMG Health, a national healthcare consulting firm.
“There’s no question there’s need for care and for services, said Grauman, who has decades of familiarity with the Philadelphia region’s healthcare market.
A welcome public meeting
During an hourlong question and answer session, residents expressed gratitude for the meeting with Polack and his senior medical adviser, Arthur Klein, a pediatric cardiologist who spent decades as an executive at nonprofit health systems in New York.
“Many times things happen in our community, and we are the last to know, so you started off very, very well,” said Zulene Mayfield, chairperson of Chester Residents Concerned for Quality Living, a community group known for the fight to close a large trash incinerator in the city.
Some residents pushed back against Polack and Klein’s plans for a much smaller hospital than the more than 400 beds Crozer-Chester Medical Center had at its peak. During a March interview with The Inquirer, Klein suggested the new hospital could have 80 beds.
“You don’t want a hospital of the 1990s,” Klein said Tuesday.
The current hospital structure encompasses 750,000 square feet — now completely empty. Crozer’s shuttered ED took up 30,000 of the square feet. Chariot Allaire contemplates opening a hospital a tenth of the size of the old hospital.
Operating that hospital cost way too much, Polack said. ”It also doesn’t meet the way medical care is done today, which is mainly on the outpatient side,” said Polack, who has worked in healthcare real estate development in New York.
Simone Development Cos., where Polack worked before striking out on his own, often collaborated on real estate deals with Montefiore, a health system in the Bronx that serves many patients with Medicaid insurance, Grauman said.
That experience is relevant to the effort here, he said, given that Crozer also served large numbers of people with Medicaid, which pays significantly lower rates than private insurers.
The role of local health systems
Before Prospect’s bankruptcy filing in January 2025, a few local health systems explored establishing a new nonprofit to take over Crozer-Chester Medical Center. Those talks continued during the bankruptcy, but failed to produce a solution.
The University of Pennsylvania Health System said it remains at the table.
“We continue to work with committed partners to restore crucial healthcare services for Delaware County residents,” Penn said in a statement. “It’s important that any new models for the former Crozer-Chester site are built to be sustainable amid a rapidly changing healthcare landscape and persistent financial challenges.”
ChristianaCare, which plans to open a micro-hospital in Aston in June, is not in discussions with Chariot Allaire, it said, but supports “their efforts to expand access to quality heath care in Delaware County.”
While Chariot Allaire is wooing health systems, the new owners of two other closed Crozer Health hospitals, Taylor and Springfield, are doing the same thing. Local investors paid $1 million each for those hospitals. Those low prices could allow the owners to offer below market rate leases to attract tenants.
Polack noted that if no local systems want to bring services to the Crozer site, he would look farther afield.
“We don’t control hospital systems and operators, but we are doing everything that we can to put the pieces together to illustrate the opportunity that we see here to those hospital systems,” he said.