On behalf of Buhl Regional Health Foundation’s (BRHF) Board of Directors, I want to begin by saying that the hearts and minds of our Board Members are with the patients and hard-working staff of Sharon Regional Medical Center (SRMC). We are deeply concerned about their future and want to be abundantly clear: we want to help, and we want to provide hope to everyone in our community. As events have shifted, let me share with you what’s really been going on behind the scenes.
For background, Buhl Regional is a 501(c)3 private foundation, funded by proceeds from the original sale of Sharon Regional in 2014. Our mandate was widely agreed upon at the time to improve the health and well-being of the neighbors we serve, with Mercer County ranking a dangerous 57th out of the 67 counties in the state in overall health outcomes. In the past year alone, we have awarded $1.75 million in grants to local organizations, given 35 scholarships, totaling $195K, to students in a health-related field of study, and provided several programs to our community, including a free dental clinic operated fully by volunteers. Our current laser focus has been threefold — on education and health initiatives designed to prevent poor health outcomes, collaborative programming models that improve the health of the community, and resources for healthy children to become healthy adults. As such, we are completely separate and independent from any health care provider, with an extremely broad-reaching diversity of communities to support.
Our board represents experienced, respected, and diverse facets of the wellness objectives of this community. We are acutely aware of the devastation of a potential closure of Sharon Regional on everyone. We praise the hospital employees who have withstood enormous challenges for months, if not years, caused by questionable management practices of the hospital’s out-of-state, for-profit owners who are now mired in a bankruptcy that is draining the local facility of badly needed funds. We also feel it is important to clarify the facts in the situation surrounding our financial commitment to MMC.
This past summer, the BRHF Board was approached by MMC for funding in the amount of $45 million to support a buyout. After much thought, discussion, and analysis, our board determined that the exorbitant request was unsubstantiated and could not be approved without proper due diligence to meet our longstanding policy standards. We are pledged to uphold these standards and are legally and ethically responsible for them. Therefore, the request was declined. No reputable bank would consider a grant or loan of such an amount without proper business plans, strategies, tactics, schedules, and the like. This was conveyed to MMC and, as in any negotiation, they were invited to return with a counter-proposal.
Through discussion with the Governor and Attorney General’s offices, the BRHF board received a second grant request on behalf of MMC on the evening of December 12, 2024, for $36 million. We agreed to convene our Board on an expedited basis. Emergency meetings were held the next day by our 14-member Board which also included the Governor’s Office, Attorney General, and MMC, attempting to, once again, collect due diligence on the matter. Despite our great desire to help and provide hope, the requirements needed still were not met, to our great frustration.
However, our Board determined a creative, generous alternative – a low-to-no interest loan in the amount of $11 million. This alone would address a shortfall in the funding needed to facilitate the most urgent part in this transaction, the transfer of hospital real estate to MMC, and then allowing the balance to assist with operation costs for a period of time. This loan was matched, dollar-for-dollar, by other concerned community partners, bringing the total commitment to over $20 million.
The Board of Directors is truly concerned about the horrible effects a hospital closure could have on a community. Under harsh personal criticism from many in the community, our board members have put forth extensive time, energy, and expertise to this matter. Without any fanfare, we have, confidentially, contributed financially to continue Sharon Regional operations since October, keeping the hospital open. After Friday’s discussions, our Board was confident that the collaborative offer made to MMC, of over $20 million in funds, would have achieved the most important objective, although the situation remained opaque and continually shifting.
We remain hopeful that community partners will consider creatively and flexibly working together to suggest alternative solutions in this matter and we maintain our commitment to participate in those discussions.
Signed:
Angela Palumbo
Board Chair, Buhl Regional Health Foundation
