Since the beginning of November, one Pennsylvania hospital has had its license revoked and closed, and another has landed in bankruptcy court facing sale or closure.
On Nov. 1, Meadowbrook, Pa.-based Redeemer Health sought Chapter 11 bankruptcy protection, with plans to sell or close its Holy Redeemer Hospital.
The system is seeking a buyer for the 239-bed hospital and physician network and also creating a wind-down plan if a sale does not occur. Over the past five years, the hospital and its physician network have lost between $31.6 million and $48.9 million annually.
As of April 30, 2026, Redeemer Health reported about $441 million in total liabilities. Holy Redeemer has delivered more than 11,000 babies since 2021, and the system’s malpractice costs, much of them tied to maternity services, are about $16 million a year.
“For several years, the [Redeemer Health] Board of Trustees worked with several professionals and financial advisors to identify avenues toward financial stability to stabilize operations,” James Logue, president and CEO of Redeemer Health, said in a Nov. 1 declaration filed in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. “Due to various market conditions and trends in the acute and post-acute healthcare industries, however, the Board determined that divesting the company of its acute care operations provides it with the best opportunity to sustain its life care operations into the future, consistent with its mission.”
At Sharon (Pa.) Regional Medical Center, the hospital had its license revoked Nov. 4 by the Pennsylvania Department of Health, effective Nov. 17, with an order to close after its electricity provider moved to cut power due to an unpaid bill.
Sharon Regional, which is part of hospital turnaround company Pasadena, Calif.-based Tenor Health Foundation, suspended all hospital services Nov. 4 as part of a restructuring. The hospital previously missed two pay cycles in October and paused its inpatient care Oct. 29, but left its emergency department open.
In May 2025, Tenor reopened Sharon Regional after it acquired the hospital from bankrupt Dallas-based Steward Health Care.
While Pennsylvania Gov. Josh Shapiro’s office accused Tenor of mismanaging the facility, Radha Savitala, president and chairman of the board of Tenor Health Foundation, said she has requested meetings with Mr. Shapiro’s office and sought funds through the Rural Health Transformation Program.
“Unfortunately, a significant portion of the working capital we raised to support Sharon’s reopening and operations had to be used to fund liabilities from Steward Health Care, including those related to WARN Act and other acquisition-related obligations,” Ms. Savitala said.
