After months of negotiations, Meadville Medical Center (MMC) and the bankrupt controlling parties of Sharon Regional Medical Center have failed to raise the additional funding demanded to keep the facility open.

According to a media release, Meadville Medical Center has withdrawn its offer to purchase the hospital.

MCC made this decision after having a meeting with the Buhl Regional Health Foundation Friday.

During the meeting, MCC asked for a $25 million grant. Jennifer Barborak, executive director of the Buhl Regional Health Foundation, said the board's best offer is an $11 million loan that the community would match.

"We have been asking for due diligence in writing with Meadville Medical Center since June. We have not received anything in writing, and so with the request coming in, we felt it best to go ahead and meet with them, and listen to them, and listen to their business plan," said Barborak.

Michelle Henry, Pennsylvania Attorney General, showed disappointment in the result from the meeting.  Her office gave the following statement:

This is another example of a private equity buyer valuing dollars over people and communities. We are disappointed that, despite best efforts from our office and the Governor’s Office, an immediate solution was not attainable. 
 
Time and time again, here in the Commonwealth and across the country, we have seen private equity acquisitions of health care systems harm the many residents and families who depend on facilities and their staff for essential services.
 
My office is an advocate for affordable and accessible health care, and we worked around the clock with the parties involved to try to salvage a financial arrangement that keeps Sharon Hospital’s doors open and staff employed at their respective locations.
 
We expect to be in court Thursday regarding our civil complaint filed against MPT/CHS.
 


Without MMC's offer, a facility closure notice for Sharon Regional has been filed in U.S. Bankruptcy Court. The proposed closure date is listed as January 6, 2024 - which is likely a typo for 2025.

MMC was unable to raise the funding needed to "keep financially stabilize the hospital for the long term."

Sharon Regional Medical Center has more than 700 employees, and now the future of the facility remains uncertain whether another sale to a different owner.

The state has been covering the cost to keep the hospital open since September. It was providing $1.5 million per month, totaling $4.5 million. In early December, Steward asked for $3 million, double what it cost to run the hospital in November.

A MMC spokesperson said, "A tremendous amount of effort and resources were dedicated to keeping SRMC open and serving the community.  On behalf of MMC, we want to acknowledge those individuals and organizations who went above and beyond to support this worthy effort to preserve essential healthcare services for the Sharon community.

The release also acknowledged the employees and the leadership of the hospital.

The release stated, "After a meeting with the Buhl Regional Health Foundation Friday afternoon, we came to the realization that adequate funding to financially stabilize the hospital would not be forthcoming, and our efforts to preserve SRMC were no longer viable."

“We genuinely want what is best for the community and remain willing to support SRMC and to preserve essential healthcare for the Sharon community,” stated Philip Pandolph, Chief Executive Officer, MMC.