By Melissa Klaric
The Herald
SHARON, Pa. — Sharon Regional Health System’s time as an operating hospital is dwindling.
Frank Jannetti, Mercer County director of public safety, told The Herald he was informed the embattled Sharon hospital would close at 7 p.m. Wednesday. The lights at the hospital went out just before 7 p.m.
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The hospital announced Wednesday afternoon it was suspending all patient services immediately and its emergency room — the lone department still in operation — would close by 8 a.m. Friday.
In the lead-up to Wednesday night’s closing, ambulances were seen transporting ER patients to other area hospitals, while employees carried out personal belongings.
The hospital system said it was undergoing “restructuring,” and administrators dismissed most employees Wednesday after informing them payroll for this Friday has not been secured.
Peter Bastone, CEO of the nonprofit Tenor Health Foundation and interim CEO of Sharon Regional Health System, said in the news release the hospital has started the process of “suspending hospital services.”
In an email to staff on Wednesday, Bastone dismissed most employees.
“As a result of this suspension, employment for most Sharon Regional employees will end, effective immediately,” Bastone stated in the email. “Written information about pay, accrued paid time off under the applicable policy, benefits and COBRA continuation, and retirement plan accounts will follow.”
Bastone went on to inform staff that “certain employees” will be asked to remain with the hospital temporarily “to support essential services and transition activities.”
Bastone also addressed Friday’s upcoming payday in the email to staff.
“At this time, Sharon Regional has not yet secured the funding necessary to meet this week’s payroll obligations,” Bastone stated.
Bastone also said that the hospital system made the difficult decision to suspend patient services immediately as it undertakes restructuring.
“Designed to establish a more sustainable, cost-effective clinical footprint focused on the services most needed by the community,” Bastone said. “The suspension will include broader acute care and outpatient operations, and emergency department services will not be available to the public as of 8 a.m. Friday .”
However, the hospital’s street signs were darkened, as were most lights in the hospital on Wednesday night.
“It changes hour to hour,” an employee outside the ER entrance said, speaking about the administration’s directives.
Bastone said if inpatient care is needed, patients will be stabilized and transferred to an appropriate facility for continued treatment.
“We recognize the impact this transition will have on our patients and employees, and we remain committed to working toward a sustainable path forward for Sharon Regional so that we can continue to support the community,” Bastone said in the news release.
He also thanked employees for their continued dedication.
“Please know that this reflects neither the dedication of our team nor the quality of care provided, but the financial challenges that have made the hospital’s current operating model unsustainable,” Bastone stated to staff.
According to court records filed in the Mercer County courthouse, Tenor Health Foundation Sharon LLC and/or Sharon Regional Health System are almost $20 million in the hole.
The figure comes from 12 judgments or lawsuits for federal or state tax liens, delinquent local taxes, unpaid physician and vendor services, on top of a $10 million loan from community organizations and municipalities to help Tenor Health reopen the hospital after Sharon Regional’s former owner, Texas -based, for-profit Steward Health Care , closed it in January 2025.
No repayments have been made on the loan.
Tenor and Sharon Regional owe $5.5 million in federal tax liens alone for unremited employee withholdings.
Most recently, the city of Sharon filed a civil lawsuit to collect almost a half million dollars in local Earned Income Tax and Local Services Tax from Tenor Health and Sharon Regional, according to court records.
Tenor Health Foundation Sharon LLC and Sharon Regional officials did not immediately respond to requests for comment on the status of Friday’s payroll or suspension of patient services.
The hospital has been days late with the last four bi-weekly payroll payments.
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