Pa. AG says they have buyer for Sharon Regional Medical Center

SHARON, Pa. (WKBN) — Pennsylvania Attorney General Michele Henry filed a motion in bankruptcy court for Steward Health objecting to any closure of Sharon Regional Medical Center.

Henry wrote in her filing that Steward Health seeks to close Sharon Regional but a buyer has been lined up for the facility.

“Members of the Attorney General’s team have been working around the clock on efforts to enable another hospital center to acquire Sharon Hospital. A potential purchaser has been located, Meadville Medical Center “Meadville” or “MMC,” Henry wrote.

A Letter of Intent was submitted by MMC to Steward on Aug. 16, and while obtaining the financing for the acquisition is challenging, MMC informed Steward on Aug. 17 that funding has been “preliminarily” worked out.

Henry wants the court to address the fact that since MMC announced they had the funding to acquire Sharon Regional, Steward wants to be “gifted” funds from Pennsylvania on an emergency basis or they will close the hospital. She also alleges that Steward’s closing procedures go against Pennsylvania law.

Henry said Steward is asking for $1.5 million from Pennsylvania by Friday, Aug. 23 or they will send a closure notice to Sharon Regional. She said they are getting “daily threats of closure” from Steward and are considering the funding, but it can’t be done by Aug. 23.

Steward said they are being pressured by lenders to obtain the funding and that the lenders want them to “close hospitals immediately.”

Henry’s motion is asking the court for more time to complete the deal with MMC and to direct Steward to stop threatening closure. She said the funding could take up to two weeks and that 60 to 90 days is needed to obtain a firm financial accounting of Sharon Regional.

“This time period is needed to allow Pennsylvania sufficient time to obtain funding for MMC and then proceed to close the transaction,” Henry wrote.

Steward Health Care announced Wednesday that they are beginning the process of closing Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Hospital in Howland. Several local Steward Health satellite facilities are also set to close.

Closing procedures will commence on Sept. 19.

The closures come on the heels of the health system’s financial breakdown and Chapter 11 bankruptcy filing in May. The system recently closed hospitals in Massachusetts and another was taken over the state.

Steward operates, or once operated, more than 30 hospitals across Arizona, Ohio, Pennsylvania, Arkansas, Florida, Louisiana, Texas and Massachusetts.

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