Pennsylvania hospital slated to close next month

Even after months of discussions and negotiations, the Sharon Regional Medical Center is poised to close its doors next month.

Barring a late effort to save the hospital, Sharon Regional is slated to close its doors Jan. 6. Steward Health Care, the for-profit hospital chain that filed for bankruptcy earlier this year, owns Sharon Regional and notified the Pennsylvania Department of Labor that it plans to close the facility, with about 700 people slated to lose their jobs.

Based in northwestern Pennsylvania, Sharon Regional is licensed for 163 beds and has satellite locations around the region.

Doctors are dreading the closure of the facility. Dr. Chinedu Igwe, a cardiologist at Sharon Regional, told WKBN-TV that the closure of the hospital would be “devastating.”

Dr. Sheetal Nijhawan, chief of the medical staff, also provided a letter to WKBN about the impact of the closure, which stated, “Closure of Sharon Regional hospital would take essential, life-changing, life-preserving resources away from our community.” Nijhawan also noted the disappointment of employees finding out about layoff notices just a week before Christmas.

State officials and local officials have worked to try and keep the hospital doors open.

A spokesperson for the Pennsylvania attorney general’s office sent a statement to Chief Healthcare Executive® about the looming closure of the facility and the state’s efforts to save it.

“The Office of Attorney General is an advocate for affordable and accessible healthcare, and we have been working literally around the clock with the parties involved to try to salvage a financial arrangement that keeps Sharon Hospital’s doors open and staff employed,” the spokesperson said.

“Unfortunately, this is yet another example of a private equity buyer in the healthcare space 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.”

Meadville Medical Center had initially sought to buy Sharon Regional, but Meadville said this month that it could not secure adequate funding for the facility.

Philip Pandolph, chief executive officer of Meadville Medical Center, said in a statement, “We genuinely want what is best for the community and remain willing to support SRMC and to preserve essential healthcare for the Sharon community.”

Meadville said it had been meeting with a local foundation, the Buhl Regional Health Foundation, to secure funding to preserve Sharon Regional. Meadville said earlier this month, “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."

For its part, the Buhl foundation said Meadville requested $45 million to support a buyout of Sharon Regional. But the foundation said the “exorbitant request” couldn’t be approved without due diligence and declined the request.

“No reputable bank would consider a grant or loan of such an amount without proper business plans, strategies, tactics, schedules, and the like. This was conveyed to MMC and, as in any negotiation, they were invited to return with a counter-proposal,” Angela Palumbo, board chair of the Buhl foundation, wrote in a message posted on the group’s website.

The Buhl foundation said it received a second request, through state officials, for $36 million. The board countered with the offer of an $11 million loan, to be supplemented by other community groups for a total commitment of $20 million.

The Buhl foundation said it has also contributed money to Sharon Regional to keep the facility open. And Palumbo said the foundation is willing to continue to engage in talks to preserve Sharon Regional.

Steward Health Care has been selling its hospitals around the country after filing for bankruptcy in May. In the third quarter of 2024, Steward completed deals to sell 11 of its hospitals.

But Steward hasn’t been able to find buyers for all of its hospitals.

Two Massachusetts hospitals formerly owned by Steward - Carney Hospital and Nashoba Valley Medical Center - closed their doors in September, angering local and state officials and area residents.

Steward had planned to close two hospitals in Ohio in September, but Insight Health System stepped in to acquire the facilities and keep them open.