Independent Hospital Interested in Operating Sharon Regional

SHARON, Pa. – The operators of Meadville Medical Center, an independent hospital, have proposed operating Sharon Regional Medical Center if investors can be found.

Don Rhoten, MMC’s vice president of consumer engagement, said Thursday the letter of interest was submitted to the brokers operating on behalf of Steward Health Care, which filed Chapter 11 bankruptcy May 6. 

Following the bankruptcy, Steward has been seeking to sell or close all 31 of its hospitals in eight states, including its three local hospitals – Sharon Regional, Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland.

Cain Brothers, a division of Cleveland-based KeyBanc Capital Markets Inc., is serving as the broker for the Steward hospitals.

Rhoten said MMC is not interested in financially taking over the hospital, just in operating it while ensuring that the local access to health care Sharon Regional currently provides remains available for residents.

“We aren’t going to, in any way, financially compromise our hospital in this process. And we want to make sure that whatever our involvement would be, if that were to come to fruition, that there would be an investment to make sure it was viable,” Rhoten said.

The real estate for Sharon Regional was sold to Medical Properties Trust, along with the other Steward facilities, prior to the bankruptcy.

MMC is a 230-bed hospital in Meadville, Pa., and operates Titusville Hospital, which Rhoten said is a critical access hospital with 25 beds.

“We’re an independent community hospital similar to Sharon in their past. We want to, if we can, play a role in securing health care in that community. We want to help, but it’s obviously an uphill climb,” Rhoten said.

Rhoten said he has not heard if there is a date when MMC will learn if its proposal is accepted.

Although it was initially reported there were no “qualified” bids for the local hospitals as of July 30, it was later noted in court documents that there were some late bidders. A hearing to consider the sale of the local hospitals was previously scheduled for Tuesday in U.S. Bankruptcy Court in Houston, but was postponed Monday. No new date has been scheduled.

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