Sharon Hospital Gets a Last Minute, 2-Day Reprieve
SHARON, Pa. – A two-day extension has been granted regarding the sale of Sharon Regional Medical Center, part of the Steward Health Care bankruptcy.
U.S. Bankruptcy Judge Christopher Lopez ruled Monday afternoon to hold a status conference on the hospital’s sale Wednesday morning and extended the deadline for the sale from Monday afternoon to 5 p.m. Wednesday.
The hearing was requested by the office of Pennsylvania Attorney General Michelle Henry, who filed an emergency request Sunday and was joined on the filing Monday afternoon by Meadville Medical Center, which has expressed an interest in acquiring and operating Sharon Regional following the bankruptcy.
The attorney general requested a 14-day extension Sunday after learning that Steward was demanding $3 million to fund the hospital’s expenses this month or it would begin the process to close the hospital today, Dec. 2.
The request came after Pennsylvania already paid $4.5 million to subsidize hospital operations for September, October and November.
Court papers say Steward’s demand to double the monthly subsidy rate came late Wednesday, during a phone call just before the Thanksgiving holiday. The documentation regarding the $3 million request was not received by the attorney general’s office until 4:30 p.m. Friday.
Negotiations have been characterized as slow between Pennsylvania and Medical Properties Trust, which owns the real estate where Sharon Regional operates. However, the commonwealth disagrees with the validity of MPT’s titles, which it says was transferred from Community Health Systems to Steward and then to MPT without required approval. A hearing is scheduled for Dec. 6 in Mercer County Common Pleas Court regarding the real estate transfer.
Sharon Regional has more than 750 employees, generates an economic impact of $115 million for the local community and has served the region for more than 125 years.
Continued operation of the 163-bed acute care hospital and 19 satellite centers makes it vital to the region, according to the attorney general.
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