Possible Progress Reported Involving Local Hospitals
YOUNGSTOWN, Ohio – Progress is reportedly being made involving the local hospitals affected by the Steward Health Care Systems bankruptcy.
At the start of the hearing Tuesday in U.S. Bankruptcy Court in Houston before Judge Christopher Lopez, an update from a Steward attorney noted some progress has been made related to the status of the “non-Massachusetts hospitals.”
Without mentioning them by name, by referring to them in connection with hospitals in Massachusetts, the attorney’s description means the hospitals that Steward operates in the Mahoning and Shenango valleys. The area hospitals and those in Massachusetts comprise what Steward designated as “first round hospitals” to be sold or closed.
A hearing is scheduled for Aug. 30, but if there is a need for an emergency relief hearing before that, it should be set up through the court, Lopez said.
The commonwealth of Pennsylvania was given a deadline of close of business Aug. 30 to arrange $1.5 million in interim financing to prevent Steward, which filed for Chapter 11 bankruptcy in May, from issuing a closure notice for Sharon Regional Medical Center in Sharon, Pa.
A notice of closure was issued Aug. 21 for Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland, along with satellite facilities operated by those hospitals.
On Monday, Duriya Dhinojwala, an attorney with Brennan, Manna & Diamond LLC in Akron, filed a request to be allowed to represent the city of Warren, Trumbull County Board of Commissioners and Western Reserve Health Education Inc.
As of noon Tuesday, no additional court documents had been filed regarding the Trumbull County hospitals. The Warren City Hospital group has been attempting to raise $30 million to bid on and operate the hospitals for 90 days.
At the time the notice of closure was issued, a deadline of seven days was given for objections to be filed. The group trying to save the local hospitals was expected to file an objection with the bankruptcy court Monday, but no filing was made.
WFMJ-TV reported Monday that Trumbull County Commissioner Denny Malloy said some members of the group trying to save the local hospitals – including Warren City Hospital, city officials and himself – met Sunday and now plan to provide information about their bid to purchase the hospitals and operation plans to the bankruptcy court Wednesday. The Business Journal tried to contact members of the group Tuesday, but calls and emails were not immediately returned.
Steward has indicated it plans to close the Trumbull facilities no later than Sept. 20, which would mean a loss of more than 900 jobs and at least $1.4 million in income tax revenue for the city of Warren.
Copyright 2024 The Business Journal, Youngstown, Ohio.
