Pa. commits $4.5M to keep Sharon Regional open
Pennsylvania has committed $4.5 million to keep Sharon Regional Medical Center open through the end of November while a new owner is sought for the downtown Sharon, Pa., hospital operated by bankrupt Steward Health Care.
The commonwealth’s Attorney General Michelle A. Henry on Tuesday filed the funding plan in the Dallas-based company’s Chapter 11 case.
It calls for Pennsylvania to pay $1.5 million to Sharon Regional from September through November “solely for the purposes of maintaining operations” at the hospital “in the ordinary course of business,” including payroll, rent, trade and supply disbursements and other expenses like technology, accounting, finance and treasury services, the court document states.
The payments are due no later than the sixth day of each month starting no later than today.
In exchange, Steward Health agrees to “continue operations at the Sharon Hospital in the ordinary course of business and to not issue any facility closure notice” for the hospital while the agreement is in effect and so long as Pennsylvania honors the funding obligation, the filing states.
In addition, Steward Health “shall consult in good faith” with Pennsylvania “regarding the sale of Sharon Hospital to MMC (Meadville Medical Center) or such other party determined by the Commonwealth to be an acceptable purchaser,” the filing states.
Meadville Medical Center submitted a letter of intent to acquire the facility in downtown Sharon on Aug. 16.
Tuesday’s filing requires Steward Health to give Pennsylvania bi-weekly cash flow reports, including cash collections of the hospital’s patient service revenues and payroll disbursements; monthly financial statements; and “any other financial information reasonably requested.”
If Pennsylvania determines that a transaction with Meadville Medical Center or another purchaser approved by the commonwealth for the hospital is unable to close by Dec. 1, Pennsylvania is required to issue a termination notice for the agreement and Steward Health would be permitted to issue a closure notice, the filing states.
Pa. commits $4.5M to keep Sharon Regional open
Pennsylvania has committed $4.5 million to keep Sharon Regional Medical Center open through the end of November while a new owner is sought for the downtown Sharon, Pa., hospital operated by bankrupt Steward Health Care.
The commonwealth’s Attorney General Michelle A. Henry filed the funding plan today in the Dallas-based company’s Chapter 11 case.
It calls for Pennsylvania to pay $1.5 million to Sharon Regional from September through November “solely for the purposes of maintaining operations” at the hospital “in the ordinary course of business,” including payroll, rent, trade and supply disbursements and other expenses like technology, accounting, finance and treasury services, the court document states.
The payments are due no later than the sixth day of each month starting no later than Wednesday.
In exchange, Steward Health agrees to “continue operations at the Sharon Hospital in the ordinary course of business and to not issue any facility closure notice” for the hospital while the agreement is in effect and so long as Pennsylvania honors the funding obligation, the filing states.
In addition, Steward Health “shall consult in good faith” with Pennsylvania “regarding the sale of Sharon Hospital to MMC (Meadville Medical Center) or such other party determined by the Commonwealth to be an acceptable purchaser,” the filing states.
Meadville Medical Center submitted a letter of intent to acquire the facility in downtown Sharon on Aug. 16.
Today’s filing requires Steward Health to give Pennsylvania bi-weekly cash flow reports, including cash collections of the hospital’s patient service revenues and payroll disbursements; monthly financial statements; and “any other financial information reasonably requested.”
If Pennsylvania determines that a transaction with Meadville Medical Center or another purchaser approved by the commonwealth for the hospital is unable to close by Dec. 1, Pennsylvania is required to issue a termination notice for the agreement and Steward Health would be permitted to issue a closure notice, the filing states.
Meanwhile, a hearing is scheduled for this afternoon in a Houston bankruptcy court on a proposal for Medical Properties Trust, landlord for most of Steward Health’s properties, to assume operations at the facilities. The facilities include Trumbull Regional Medical Center and Hillside Rehabilitation Center in Trumbull County as well as others elsewhere, except in Massachusetts.