Sharon (Pa.) Regional Medical Center has missed payroll its last two cycles, a spokesperson for the hospital confirmed with Becker’s.
The first missed payroll, on Oct. 9, was delayed by the Columbus Day holiday, and the second was Oct. 23, the spokesperson said.
“We are working diligently to secure the necessary funding for payroll and anticipate funding this week,” Peter Bastone, CEO of Sharon Regional Health System, said in an Oct. 27 statement shared with Becker’s. “We recognize the serious impact of the delay on our employees and greatly appreciate their continued commitment to our patients and community.”
Mr. Bastone said the hospital will share additional information on the situation once it has updates.
Sharon Regional closed in early 2025 under former owner Dallas-based Steward Health Care, which sought Chapter 11 protection in May 2024. The hospital fully reopened in late May 2025 under Pasadena, Calif.-based Tenor Health Foundation, a hospital turnaround company, as Sharon Regional Health System.
Radha Savitala, president and chairman of the board of the Tenor Health Foundation, pointed to several issues in the Pennsylvania market driving hospital challenges and closures in a 2025 Becker’s interview: The state has more hospitals than many others, some systems likely overpaid in acquisitions 10 to 15 years ago and later divested, and Medicaid reimbursement for acute care is weak.
“You also have to assess which service lines are truly sustainable for the community. A strong local healthcare market is essential,” she said. “When you have that market share, you’re more likely to achieve economies of scale and negotiate more favorable managed care agreements to help offset low Medicaid rates. Ultimately, you need hands-on leadership that understands both the health of the hospital and the broader needs of the community.”
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