Local leaders push Steward to sell Sharon Regional

May 6—SHARON — Steward Health Care's bankruptcy filing Monday marked a breaking point for Mercer County Commissioner Tim McGonigle.

"I am urging Steward to sell Sharon Regional as soon as possible," McGonigle said.

McGonigle said in a written statement that he has been following Steward's financial plight and has been listening to concerns from Sharon Regional employees. In addition to Sharon Regional, Steward owns Trumbull Regional Medical Center in Warren, Ohio, and Hillside Rehabilitation Hospital in Howland Township. Both are in Trumbull County.

"It's my fear that an announcement like this will certainly have an acute negative fallout for both the Trumbull and Mercer County hospitals owned by Steward," McGonigle said in his statement. "Most concerning is that many local Steward patients will look to other options when seeing health care due to this recent bankruptcy announcement."

He also worries Steward employees will likely seek jobs elsewhere.

"Sadly, some have already left which highlights the stark outlook for Sharon Regional," he said.

However, he called on patients and local residents to continue supporting the local healthcare provider.

"During this bankruptcy period, I would urge everyone to continue to support Steward's local administrators, nurses, doctors, and other staff, who continue to provide exceptional services to our community despite the crisis at the top."

Mercer County's two other commissioners and others expressed hope that better days were ahead for the healthcare provider. They view the sale of Sharon Regional as a necessity.

Before going to college,Mercer County Commissioner Ann Coleman worked at Sharon Regional's cafeteria kitchen and her mother worked at the hospital for 30 years.

"I've had both of my kids there," Coleman said.

The three county commissioners have been briefed by local legislators on what the state is doing to help Sharon Regional, she said, and local officials are continuing to communicate with local hospital leadership.

"I would hope they find a viable operator for the hospital so that it stays open so local residents have options for their healthcare and we retain those jobs," Coleman said.

A Sharon Regional spokesperson was unable to immediately respond to bankruptcy questions. A message to Steward's bankruptcy attorneys Monday wasn't immediately returned.

Sharon City manager Bob Fiscus said in a statement that Sharon Regional has historically provided exceptional health care.

"The filing for Chapter 11 bankruptcy reorganization will allow this vital hospital to continue to operate and strengthen its services while being marketed for sale," Fiscus said in his statement. "The city of Sharon will continue to work closely with the current administration and looks forward to supporting potential buyers."

Rod Wilt sits in a unique position. Wilt is executive director of Penn-Northwest Development Corp., Mercer County's lead economic development agency. He also is a member of Sharon Regional's advisory board.

Wilt also supports a Sharon Regional sale.

"Having a new owner-operator is probably the only path forward for Sharon Regional," Wilt said.

Steward, a for-profit healthcare provider, bought Sharon Regional in 2017 from for-profit Community Health Systems Inc. Before that, Sharon Regional had been a non-profit entity since it was founded in 1893.

Sharon Regional's ownership as a for-profit business hasn't worked out, Wilt said.

"The for-profit model is not a viable solution for Sharon Regional," he said. "We have to look at what we can to do to find a non-profit for this market to give Sharon Regional a real opportunity to move forward."

In conversations with Sharon Regional executives, Wilt said he was told non-profit health systems have shown an interest in buying the local hospital. But no deals were in hand, and he didn't have specific names.

"Everyone knows keeping the hospital going is paramount," he said. "Having a hospital close and then try to reopen is not going to be in anyone's best interest."

Speaking on behalf of Penn-Northwest, he said the bankruptcy filing presents an opportunity for Sharon Regional under new ownership.

"We will facilitate meetings with state and local officials and stakeholders who can assist with the transition to new ownership," Wilt said. "We are deeply committed to keeping Sharon Regional Health System a viable care provider in Mercer County."