Pennsylvania filed an emergency motion Dec. 1 in bankruptcy court after Dallas-based Steward Health Care requested $3 million per month by Dec. 2 for its Sharon (Pa.) Regional Medical Center or it would begin closing the 163-bed hospital.
Here are seven things to know:
1. The motion, filed on behalf of Pennsylvania Attorney General Michelle Henry, claimed that Steward made the state aware of its demands on Nov. 27. "This is very troubling, and it is unreasonable," the motion said. "It is simply impossible for Pennsylvania to agree to the debtors' [Steward] demand by tomorrow morning [Dec. 2]."
2. The motion also requested a two-week delay of the closure notice to allow time for the state to finalize a deal to sell the hospital to Meadville (Pa.) Medical Center.
3. Sharon Regional comprises more than 750 employees and generates around $115 million in economic activity for the area it serves, the motion said.
4. Steward, which sought Chapter 11 protection on May 6, shared in late August that it was seeking $1.5 million from Pennsylvania to support the hospital or else it would submit a closure notice. Since September, the state has provided $4.5 million to the hospital to help maintain operations during the search for a new operator.
5. In early August, Steward also shared that it would be closing Sharon Regional's 125-year-old nursing school after its current class of students graduate next May.
6. "In the event that the debtors file a closure notice, Pennsylvania believes that there will be irreparable damage to Sharon hospital," the motion said. "Historically, when a closure notice is issued, a decline in patients occurs, there are efforts by employees to seek new employment, and efforts by physicians and other professional staff to look for other opportunities as well."
7. A hearing regarding the status of Sharon Regional has been scheduled for Dec. 4 and the court also granted a Dec. 4 deadline extension related to concerns over the hospital.
Steward did not have a comment for Becker's at this time.
Becker's has reached out to Ms. Henry's office and Meadville Medical Center for comment and will update this story should more information become available.