Sen. Brooks: 2 buyers interested in Sharon Regional

May 8—SHARON — Sharon Regional Medical Center and all 30 other hospitals owned by bankrupt Steward Health Care are going up for sale at auction.

The privately owned health care group said its hospitals would go on the auction block as early as next month. The company hopes to complete the sales by the end of the summer, its attorneys said Tuesday at a federal bankruptcy court hearing in Dallas.

The bankruptcy court would oversee the auction.

Steward, which filed for bankruptcy protection Monday, hopes to keep all of its hospitals open over the long term, attorney Ray Schrock told U.S. Bankruptcy Judge Chris Lopez, who is overseeing the company's Chapter 11 proceedings in Texas, where Steward is based.

"Our goal remains that there are zero hospitals closed on our watch," Schrock said. "There's going to be a change in ownership in many hospitals, we recognize that. But we don't want to see any of these communities fail to be served."

In a news release, Steward said all of its hospitals will continue treating patients.

"Steward Health Care will continue to provide care to patients without disruption," the release said. "Steward does not expect any interruptions in its day-to-day operations, which will continue in the ordinary course throughout the Chapter 11 process. Steward's hospitals, medical centers and physician's offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change."

Two buyers interested in Sharon hospital, Sen. Brooks says

Two interested buyers have already surfaced for Sharon Regional, state Sen. Michele Brooks, R-50, Jamestown, said.

"They are both non-profit organizations," Brooks said. She declined to identify them because of confidentiality concerns.

When asked Thursday if non-profit UPMC was interested in buying Sharon Regional a spokesman for the Pittsburgh-based healthcare provider responded, "We have nothing to report at this time." Its UPMC Horizon subsidiary has hospitals in Farrell and Greenville.

In response to a Herald inquiry Monday, Allegheny Health Network said it wasn't among potential suitors for Sharon Regional. The non-profit, also headquartered in Pittsburgh, owns AHN Grove City hospital.

Brooks acknowledged she has concerns.

"I'm not going to sugarcoat it. There is always the possibility Sharon Regional could close," she said. "But everyone is working hard to find a buyer. Every angle is being explored to keep this hospital intact and in the community."

She credited Sharon Regional's 700 employees for their dedication.

"If it wasn't for the hospital staff, there wouldn't be the opportunity to look for a buyer," Brooks said.

Brooks, who chairs the state Senate's Health and Human Services Committee, said she has been working on securing state funding — in the six-figure range — to aid Sharon Regional with its workforce and improvement projects.

But Brooks said she wants to make sure the funds directly go to Sharon Regional.

"We want to keep that money local," Brooks said.

Court documents filed by Steward said it has more than $9 billion in total liabilities, including $1.2 billion in loans, $6.6 billion in long-term rent obligations, nearly $1 billion in unpaid bills from suppliers and $290 million in unpaid employee wages and benefits, the news agency Reuters reports.

Hospital 'victim of corporate greed,' commissioner says

Mercer County Commissioner Tim McGonigle, who has been critical of Steward's financial dealings, said Wednesday was a dark day in Sharon Regional's history.

"Today's news that Sharon Regional Health System is going up for auction to the highest bidder would bring tears to the eyes of its founding donors," McGonigle said.

He invoked the memory of Dr. Elisha Griswold, a former Civil War surgeon who was among the hospital's founding members when it was incorporated in 1893 and then opened its doors three years later.

"The spirit of Dr. Griswold and his like-minded group of doctors whose dreams brought Sharon Regional Health System to fruition in 1896 has died," McGonigle said. "Our beloved hospital was a victim of corporate greed, and we've now learned a costly lesson. Let's make sure the next owners understand what their responsibility is to our community and the people they employ. Hopefully we will continue to see world class care right here Sharon."

Sharon Regional — previously a non-profit known as the Christian H. Buhl Hospital and Sharon General Hospital — was sold in 2014 to CHS, a for-profit Tennessee company that owned, leased and operated 206 other hospitals in 29 states. CHS, facing financial troubles of its own, sold it to the for-profit Steward in 2017.

Department of Health

safety report update

Wednesday evening, the state Department of Health responded to written questions from The Herald about a report recently made public of an unannounced safety inspection it conducted at Sharon Regional buildings in mid-March. The report found hundreds of safety "deficiencies" and "non-compliance" such as improper sprinkler systems in certain areas and storing combustible materials in empty patient rooms.

In response to Herald questions, the Department of Health said that these could be called "violations." and Sharon Regional hasn't been fined — yet.

"The hospital is continuing to be monitored as plans of correction are being implemented with potential fines being determined at a later date," the Health Department said.

In response to whether the agency believes patients and others are safe in Sharon Regional buildings identified in the report, the agency said: "If the Department finds a hospital is unsafe, the Department takes immediate and decisive action, even if it necessitates temporarily closing the facility until the identified issues are fully rectified. The hospital in question has presented an acceptable plan of correction and is actively implementing it. The Department will continue to monitor the facility, ensuring that the hospital achieves and sustains substantial compliance."

Earlier in the day, Sharon Regional responded to the report.

"Sharon Regional Medical Center remains committed to the community and is focused on providing the highest quality of care to all patients in a safe environment," a statement issued by Sharon Regional said. "Patient safety is paramount to what we do, and we work very hard to comply with all state regulations."

The healthcare provider said it's working to correct the remaining problems.

"The Department of Health inspections make us better and Steward is investing in the hospital and working closely with Sharon Regional's administrative team to address and correct all findings in the recent survey," the statement said.

The report didn't cover healthcare delivered by the healthcare provider.

Sharon Regional had fixed many of the problem areas, the report said, and was working to remedy the remaining ones.

CNHI News Service contributed to this story.