Meadville (Pa.) Medical Center is attempting to reach a deal with the financially troubled Dallas-based Steward Health Care to avoid the closure of physician practices affiliated with Sharon Regional Medical Center, The Meadville Tribune reported Oct. 31.
Steward owns Sharon Regional Medical Center, according to the report, and Stewardship Health provides physician services for the hospital, according to the report.
Mercer County officials, along with MMC, want to avoid the closure of the offices that are affiliated with Stewardship Health, Steward's physician group that was recently sold to Nashville, Tenn.-based primary care provider Rural Healthcare Group, part of private equity firm Kinderhook Industries.
Steward filed for Chapter 11 bankruptcy May 6 to maintain operations at its existing locations and, in August, entered into a definitive agreement to sell the physician group for a reported $245 million cash deal.
MMC is working to come up with a deal to preserve patient access to physicians in Sharon. According to the report, while Stewardship physicians were initially told they were a part of the deal, they were recently informed that Rural Health Group would not be buying the medical offices in Sharon.
"We are working with 10 individuals — physicians and physician assistants. No agreement is in place, but conversations are continuing," Don Rhoten, MMC’s vice president of consumer engagement, told The Meadville Tribune. "We hope to have something completed soon, but as of now there’s nothing."
MMC has submitted a nonbinding letter of interest for the Sharon Regional Medical Center to the firm providing investment banking services to Steward, according to the report.
Becker's has reached out to Steward Health Care and MMC and will update this story if more information becomes available.