Pa. commits $4.5 million to keep Sharon Regional open

DALLAS (WKBN) — A filing entered in bankruptcy court in Texas for Steward Health shows a commitment by Pennsylvania to keep Sharon Regional operating until at least Dec. 1.

The document entered Tuesday says that the Commonwealth will pay Sharon Hospital $1.5 million per month for three months ($4.5 million) to maintain operations including payroll, rent, supplies and accrued expenses.

In return, Steward Health agrees to continue operations and to “not issue any facility closure notice…while the agreement remains in effect.” the filing read.

Over the next three months, good faith negotiations are expected for the sale of Sharon Regional to Meadville Medical Center (MMC) or another party determined by the Commonwealth.

Pennsylvania Attorney General Michel Henry announced last month that MMC wanted to buy Sharon Regional, and a letter of intent was filed with the bankruptcy court on Aug. 16. At that time, Steward said they needed $1.5 million from the Commonwealth to keep the hospital open or it would close. Henry petitioned the Court for more time and it was granted.

The filing also stipulates that if the MMC deal doesn’t go through and there is not another buyer lined up by Dec. 1, Steward can close the hospital.

The pending closure of the Sharon hospital comes on the heels of Steward’s financial breakdown and Chapter 11 bankruptcy filing in May. The system recently closed hospitals in Massachusetts and another was taken over the state. Plans are in the works to also save Trumbull Regional Medical Center in Warren and Hillside Rehabilitation Center in Howland.

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

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