Trending
Two state lawmakers have received the first answer they wanted from the state Attorney General's office regarding failed negotiations to sell the Bradford Regional Medical Center and The Pavilion nursing facility.
Rep. Martin Causer, R-Bradford, and Sen. Cris Dush, R-Brookville, had called on the Attorney General's office to investigate the failed sale because, they said, Kaleida Health hadn't bargained in good faith with LECOM, which was trying to purchase the Bradford facilities. The acquisition was subject to the negotiation and execution of definitive agreements between LECOM and Kaleida Health, as well as the receipt of all necessary regulatory approvals.
Those talks broke down in early September, when the LECOM board voted Sept. 8 to end the discussions. One sticking point was a proposed stipulation preventing LECOM Health from starting clinical services in Bradford that would compete with Kaleida's Olean General Hospital in New York. The end of the deal means Kaleida is moving ahead with plans to close The Pavilion, with a scheduled closure date of Dec. 1.
On Monday, Dush and Causer said the Attorney General's office has agreed to explore the closure and failed sale of Bradford Regional Medical Center and The Pavillion nursing facility. The lawmakers met with senior leadership in the office to discuss concerns relating to potential anti-trust violations due to Kaleida's insistence on a non-compete clause in any contract involving the sale of BRMC and The Pavillion, as well as issues surrounding the original charitable purpose of Bradford Hospital and the treatment of its charitable assets by Kaleida.
"Our community is suffering and lives are being placed at risk due to Kaleida's self-serving decisions to close our local hospital and then refuse to sell it to any other health care provider without a non-compete clause as part of the transaction," Causer said. "Attorney General Dave Sunday and his team are clearly well aware of the ongoing issues we are facing, and I greatly appreciate their commitment to comprehensively review Kaleida's actions and further explore what options may exist to help us."
The lawmakers say they are continuing to work in conjunction with county and local officials and business and healthcare leaders as part of the Healthcare Access Team in pursuit of sustainable and affordable healthcare solutions for the region.
Dush had specifically asked the Attorney General’s Office to review the original charitable purpose of Bradford Hospital, including the 1885 Articles of Incorporation and subsequent amendments, and whether those documents establish continuing restrictions or obligations concerning charitable assets; 2018 merger and related transaction documents, including the treatment of Bradford Hospital’s charitable assets and any provisions concerning the Bradford community; the current ownership, control and disposition of any remaining charitable assets or interests associated with Bradford Hospital; whether any charitable assets or interests should continue to be used for a charitable purpose benefiting the Bradford community, including whether a local charitable organization or foundation may be an appropriate successor recipient; the reported non-compete requirement associated with the potential sale of the former hospital facility, including whether the restriction could raise concerns under Pennsylvania or federal antitrust law; and whether any additional oversight, investigation, court proceedings or corrective action is warranted to protect charitable assets, preserve the charitable purposes for which they were established, and protect competition and access to health-care services in the Bradford area.
"The situation facing patients throughout the entire Bradford region is unacceptable, particularly when you consider Kaledia's significant reductions in life-saving healthcare services - most notably the closing of Bradford Regional's emergency room," said Dush. "Given the serious implications for preserving healthcare competition and rural healthcare access, I am grateful for the PA Attorney General's Office prompt response and commitment to thoroughly examine all relevant materials and documents to determine whether further investigation of Kaleida Health's failure to work with community and local leaders is warranted."