Pennsylvania hospital needs $40M or it will close April 1

Easton (Pa.) Hospital will close by April 1 if it doesn't receive an infusion of about $40 million by March 25, according to The Morning Call, which cited a letter from the hospital's owner to Pennsylvania Gov. Tom Wolf.

The hospital has faced financial challenges for months and is on the brink of closing after canceling profitable elective surgeries in response to the COVID-19 pandemic.

"The resulting losses have made the continued operation of Easton Hospital impossible," states the letter from Dallas-based Steward Health Care.

A spokesperson for Mr. Wolf did not say if the administration would provide the funding to Easton Hospital, according to The Morning Call.

In February, Steward signed a letter of intent to sell Easton Hospital to Bethlehem, Pa.-based St. Luke's University Health System. Negotiations have stalled during the COVID-19 pandemic.

"The COVID-19 global pandemic and its local impact are causing St. Luke's to focus first and foremost on its patients and their care, as well as the St. Luke's clinical staff handling the outbreak," Robert Wax, senior vice president and general counsel at St. Luke's, said in a statement to The Morning Call. "St. Luke's is not deploying its resources to acquire other hospitals."

More articles on healthcare finance:

Hospitals ask for $100B in emergency coronavirus funding
'We'll improvise': A cash-strapped rural hospital's plan for coronavirus outbreak
18 healthcare groups urge Congress to act immediately on 3 mission-critical requests

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