Steward questions Meadville Hospital's ability to buy Sharon Regional
Attorneys will discuss pausing a timetable to close Sharon Regional Medical Center during a bankruptcy court hearing in Dallas on Wednesday.
Attorneys met in court in the morning but asked for more time for negotiating. A representative from the Pennsylvania Attorney General's office said that they are working with the legislature to try and secure money to cover the operating cost of Sharon regional. They will reconvene at 4:15 ET to update a judge on where things stand.
The emergency hearing was scheduled after Sharon Regional owner, Steward Health requested double the amount they previously requested to keep the hospital running as negotiations continued on a deal to have Meadville Medical Center take over operations.
Pennsylvania state officials came up with the $1.5 million monthly funding needed to keep the hospital open, but Steward had threatened to close the hospital earlier this week if the Commonwealth failed to increase that amount to $3 million per month.
The judge in the bankruptcy case temporarily put a stop to the closure threat after the Pennsylvania Attorney General argued that Steward issued the ultimatum during the Thanksgiving holiday when the legislature wasn't in session.
Attorneys representing Steward have filed an objection to the Commonwealth's request to push back the deadline, arguing that "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."
The objection says Steward has not decided to close Sharon Regional, but seeks only to file a notice seeking authority to do so if need be.
According to the Pennsylvania Attorney General, with 750 workers, Sharon Regional Hospital is Mercer County's largest employer.