Dallas-based Steward Health Care filed a Sept. 10 stipulation that Pennsylvania will provide $1.5 million to the for-profit health system's Sharon (Pa.) Regional Medical Center for three months to keep it from closing.
The court document, obtained by Becker's, shared that it is "stipulated and agreed by the parties" that Pennsylvania will begin providing the funding no later than Sept. 11, and will have the funds to Steward by the sixth day of each month through November.
In total, the state will provide Sharon Regional with $4.5 million to maintain operations at the hospital.
Should a new operator for the hospital not be secured by Dec. 2, Steward will be permitted to issue a facility closure notice.
"In consideration for the payments, the debtors [Steward] agree to continue operations at Sharon Hospital in the ordinary course of business and to not issue any facility closure notice for Sharon Hospital while this Agreement remains in effect and so long as the Commonwealth honors its funding obligations," the document said.
News of the stipulation comes after Pennsylvania Attorney General Michelle Henry shared Aug. 22 that Steward, which sought Chapter 11 protection May 6, was requiring $1.5 million from the state or it would submit a closure notice for Sharion Regional.
"Governor Shapiro firmly believes every Pennsylvanian deserves to have access to quality, affordable health care when and where they need it," a spokesperson for Pennsylvania Gov. Josh Shapiro said in a statement shared with Becker's. "The Shapiro administration continues to have productive, ongoing conversations with all parties involved with the shared goal of preserving access to critical hospital and medical care for the people of northwestern Pennsylvania."
During an Aug. 22 bankruptcy court hearing, U.S. Bankruptcy Court Judge Christoper Lopez approved a deadline of Aug. 30 for the state to come up with the funding.
Meadville (Pa.) Medical Center also submitted a letter of intent to acquire Sharon Regional on Aug. 16.
"Additionally, the debtors shall consult in good faith with the Commonwealth regarding the sale of Sharon Hospital to MMC or such other party determined by the Commonwealth to be an acceptable purchaser," the Sept. 10 document said.
Steward, which comprises 31 hospitals, has already closed two of its hospitals in Massachusetts.
Becker's has reached out to Meadville Medical Center for comment and will update this story should more information become available.