Crozer’s Landlord Wants to Sell Hospital Real Estate Amid Losses

Crozer-Chester Medical Center in Upland Township as seen in 2020
Image via David Maialetti, The Philadelphia Inquirer
Crozer-Chester Medical Center in Upland Township as seen in 2020

Medical Properties Trust, the landlord that’s collecting rent on Crozer Health’s hospitals in Delaware County isn’t too happy these days.

MPT, which is leasing the hospital properties to Crozer Health owner Prospect Medical Holdings, has written off $171 million, or 40 percent of the $420 million it invested in the real estate where Crozer’s four Delaware County hospitals sit, writes Harold Brubaker for The Philadelphia Inquirer

Medical Properties Trust Inc, is also not expecting to receive the $35 million annual rent this year it receives from the hospitals.

That said, the landlord expects the hospitals to be an attractive acquisition target when the hospital financial sector improves, as demonstrated by local politicians eager to keep the hospitals open.

“Those hospitals aren’t going away, as can be seen in the political fight about potential closures of any particular parts of hospitals,” said Edward K. Aldag Jr., MPT’s chairman and chief executive. “

Even so, MPT now wants to sell the Crozer real estate.

The Crozer system has not been easy to sell because of its financial struggles. Most of its patients have Medicaid and Medicare insurance, which does not cover all of the hospital’s costs.

Read more about Crozer Health’s landlord, Medical Properties Trust, in The Philadelphia Inquirer.

Here’s how Medical Properties Trust looks in the stock market right now.

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