The Commonwealth of Pennsylvania and the Christian H. Buhl Legacy Trust, formerly known as the Buhl Trust for Sharon Regional Health System, have filed a joint objection against the bankruptcy sale of the Mercer County hospital currently run by Steward Health.

According to the filing, The Buhl Trust has served the community for more than 125 years and is the largest employer in Mercer County. In 2014, the hospital was sold to for-profit Community Health Systems under an agreement that $75 million in capital improvements be made to the facility over five years.

The sale to CHS also included a provision stating that the new owners would need to obtain the Buhl Trust's consent if they sold any of the buildings for five years after the transaction closed.

In 2017, the Trust approved the transfer of Sharon Hospital from CHS to affiliates of the Steward Health Care System.

However, the objection states that the sale was actually to Medical Properties Trust and then leased back to Steward, which the filing called "a clear violation" of the deal.

According to Steward's bankruptcy court filing, the medical provider owes more than $6.6 billion in Medical Properties Trust lease obligations.

The objection regarding selling the financially ailing hospital was filed in the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday.

Steward filed for bankruptcy in May and is currently seeking to sell its assets through bidding, but that process has been delayed. Steward owns 31 hospitals in eight states, including Ohio and Pennsylvania.

The objection also said sales/leaseback led to a $20.2 million shortfall in the reinvestment in the hospital.

The filing also noted that Steward is defaulting on financial obligations to the Commonwealth of more than $500,000.

The filing states it objects to any sale of the hospital that is not bound to the Buhl Trust agreement from the sale in 2014.

The objection also calls for any sale of the hospital to pay all past-due funds owed to Pennsylvania and Medicare.

The court complaint also noted that the Trust and the state's attorney general office hope "that an acceptable and financially and operationally capable buyer will acquire Sharon Hospital, and that no closure will be necessary. If, however, the Debtors seek such a closure, they should be aware that it must be done in accordance with applicable state law..."