Sharon Regional Medical Center has been approved for sale to Tenor Health Foundation after submitting a winning bid during an emergency sale hearing. 

The United States Bankruptcy Court for the Southern District of Texas announced Friday afternoon it approved Tenor Health as the successful bidder. 

The court hearing is currently happening in Texas. The agreed sale price for the facility is $1.9 million, which includes furniture, fixtures, equipment, and inventory within the facility. 

The attorney in bankruptcy court told Judge Christopher Lopez they hope for court approval as soon as possible to keep the 800 hospital employees employed. 

The court filing states that Tenor Health Foundation Sharon LLC submitted a qualified bid to acquire the hospital and the attorney before the court asked the judge that the goal is to get the deal closed within days. 

The attorney told the judge that Tenor is ready to have the facility open for business within days once the deal is approved by the judge. 

Tenor is asking to complete the transaction from the current owner, MPT, and the Steward has agreed to cover the next three payrolls for Tenor. 

One attorney said they would be filing a limited objection as her client has equipment that needs to be paid for, and this agreement doesn't include language to deal with that. 

The deal includes all assets, properties, rights, and interests for Sharon Regional Medical Center, according to the filing.

The filing also states that the purchased assets do not include "all Owned Real Property and all Personal Property located thereat, all insurance
policies maintained by or on behalf of Sellers covering the Business and the Purchased Assets, all organizational documents and corporate
records, all Contracts other than any Transferred Executory Contracts, and all documents, records, correspondence, work papers, and other
documents relating to Seller Cost Reports, Cost Report Settlements or other Excluded Assets."

The deal includes at closing, the Tenor Health will assume the following liabilities: 

  • All Liabilities arising out of the use, ownership or operation of the Business, Purchased Assets or Facilities after the earlier of the Effective Time or January 9, 2025;
  • All Liabilities for Taxes related to the transfer of the Purchased Assets (other than income Taxes of Seller or Seller Party) and Property Taxes with respect to the Purchased Assets due and owing on and after the Effective Time;
  • All Liabilities arising as the custodian of the medical records; and
  • All Liabilities related to Seller Employees to the extent assumed.

Closing conditions that need to be done to finalize the sale include:

  • Delivery of the purchase price by Tenor and various duly executed closing documents
  • Pennsylvania and the Christian H. Buhl Legacy Trust have entered into a release agreement with Medical Properties Trust, Inc.

Dr. Benjamin Yates, the CEO of Yates Medical Group, who had also been trying to purchase Sharon Regional, told the court he had secured capital while Tenor Health had to turn to the community for funding. Yates told the court his proposal 25% more [at $2.5 million] than Tenor's bid and he had funding to cover payroll. 

“If this hospital shuts down again, it will be gut-wrenching for the community,” Yates said. "And says it will look horrible on all parties involved," Yates added.

Judge Lopez said he appreciated Yates's passion but overruled his concerns and approved the sale to Tenor Health.

During the hearing, the Commonwealth said that Yates has never provided sufficient documentation that he’s got any real financial backing and has had ample time to do so. 

"I simply could not be happier to sign these orders," the judge said.

It is unclear when the deal will be finalized. 

This is a developing story. Stay updated with 21 News as more details are unveiled.