Does New Owner of Jennersville, Brandywine Hospitals Have the Right Prescription to Cure Their Financial Ills?

hospital exterior
Image via Tower Health.

As Canyon Atlantic Partners is poised to take control of Jennersville and Brandywine hospitals in 2021, industry insiders are watching carefully. Some question if the Texas-based healthcare firm can succeed in making the two facilities financially sustainable. Harold Brubaker addressed the concerns for The Philadelphia Inquirer.

Much about Canyon Atlantic remains unknown. The company’s CEO, David Kreye, does have a polished track record. He has served as CEO at a number of hospitals in the past 15 years, while working for several for-profit community hospital companies.

Previously, he served as CEO of:

  • Southwest Regional Health Center in Waynesboro, Pa.
  • Physicians Regional at Collier Boulevard in Naples, Fla.
  • Ottumwa Regional Health Center in Iowa

He also started as the inaugural CEO of Lakeway Regional Medical Center in Austin, Tex., in 2011.

However, two years later, Lakeway defaulted on a $167 million mortgage.

Kreye then became CEO of University General Hospital in Houston in 2014. The hospital went into bankruptcy the following year.

The healthcare industry is noted for being daunting, especially in the local market Canyon Atlantic has chosen in Chester County.

“In general, it’s very difficult to successfully manage, operate, and balance the books for very small community hospitals,” said Dan Grauman, chief executive of healthcare consulting firm Veralon.

Kreye formed Canyon Atlantic in 2017.

Read more about Canyon Atlantic Partners in The Philadelphia Inquirer.