SHARON, Pa. – Another lifeline has been extended to Sharon Regional Medical Center with an agreement between the commonwealth of Pennsylvania and Medical Properties Trust to undergo mediation regarding the value of the hospital real estate that MPT owns.
The agreement to enter mediation was reached Monday, according to the date of the stipulation and agreed ordered filed at noon in U.S. Bankruptcy Court in Houston.
The mediation will begin Wednesday afternoon before U.S. Judge Marvin Isgur, court papers say.
Today at 12:01 a.m. was the deadline for the commonwealth to come up with $3 million to keep the hospital operating through Dec. 31. The court filing did not reveal any details about whether that sum was raised, or whether Steward would – or would not – proceed with a notice of closure.
“The scope of the mediation, which is non-binding, would be to assist the parties in reaching an acceptable sales price for which the Sharon hospital real property can be sold to Meadville [Medical Center], or such other party as designated by the commonwealth and Meadville, in order that the [Steward Health Care System] and Meadville can proceed with a potential sale,” the court filing states.
Meadville Medical Center submitted a letter of intent Aug. 16 to buy the hospital, contingent on financial support from the commonwealth and other third parties.
“Discussions … regarding a potential transaction” have taken place between MPT, the commonwealth and Meadville. “MPT and its affiliate have also had discussions with other entities interested in leasing or owning the real property and operating [the hospital], court papers say.
According to the Sharon Herald, MPT was asking $22 million for the hospital property, plus interest. That figure was revealed Friday during a hearing in Mercer County Common Pleas Court, the newspaper reported. The issue was a claim brought by the Buhl Legacy Trust that contends the property was improperly sold to MPT through previous transactions.
The hearing was adjourned and delayed until further notice.