Pennsylvania Seeks Funding to Keep Sharon Hospital Open

SHARON, Pa. – A Wednesday morning bankruptcy court hearing to determine the future of Sharon Regional Medical Center was briefly postponed, with indications that last minute efforts are underway to secure additional funding to keep the hospital open.

A representative from the Pennsylvania attorney general’s office indicated to U.S. Bankruptcy Court Judge Christopher Lopez that someone was working with both the Pennsylvania governor’s office and Legislature to secure additional funding to stop Steward Health Care System from executing a closing notice.

Steward recently requested $3 million to keep the hospital open through December. That’s in addition to the $4.5 million the commonwealth reportedly paid to cover the hospital’s costs for the previous three months.

Pennsylvania has until 5 p.m. today to secure the funding.

At the beginning of Wednesday’s hearing, attorney Ray Urbanik of the Pennsylvania attorney general’s office asked Lopez for an hour to talk to Steward about a possible resolution. That resolution would be for the emergency motion the commonwealth filed Sunday, joined later by Meadville Medical Center. Stephanie Morrison, the attorney representing Steward, said Steward wanted the status conference held today and agreed to a brief continuance.

The attorney general’s office on Sunday filed a request for a 14-day delay after Steward demanded $3 million to keep the hospital open, sending the request by telephone late Wednesday and in writing Friday.

The judge granted Pennsylvania a two-day delay instead, which expires at 5 p.m. today.

Late Tuesday, Steward filed an objection to Pennsylvania’s emergency request for a delay, claiming Steward should have the right to exercise its best business judgment, which could mean closing the Sharon hospital if necessary. The document states Steward needs some certainty as to the future of the hospital, which is one of only two Steward hospital facilities that has not been transferred to a new owner.

“There is no question that [Steward has] worked with the Commonwealth and Meadville to explore a potential sale transaction – well beyond the timeline established under the global bidding procedures – in an effort to avoid closure of Sharon Hospital,” court documents filed by Steward on Tuesday state. “Neither the Commonwealth nor Meadville have demonstrated any degree of reasonable certainty that they will be able to consummate a sale transaction to acquire Sharon Hospital, including the acquisition of the underlying real property owned by Medical Properties Trust, Inc., despite having months to reach an agreement.”

Steward’s filing notes the possibility of the hospital’s closing should not have surprised the commonwealth, because the Dec. 2 deadline was already known when the three-month extension was granted to allow continued negotiations.

The court plans to reconvene on the matter at 4:15 p.m. today.

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. 

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