T
he state Attorney General's office has dropped its lawsuit against Medical Properties Trust (MPT) over the ownership of Sharon Regional Health System real estate. This move could expedite the reopening of the closed Sharon hospital under a new owner, Tenor Health Foundation Sharon LLC. The settlement, filed in Mercer County Common Pleas Court, involves MPT agreeing to withdraw its lawsuits and transferring ownership of the property through a rent-to-own arrangement.

    The state Attorney General's office had argued that Steward Health Care improperly sold most of Sharon Regional's real estate to MPT, including the hospital building itself. This led to Steward filing for bankruptcy due in part to the burden of rent payments. The Buhl Legacy Trust, which originally owned Sharon Regional, was seeking to regain ownership.

    The settlement resolves a major barrier to completing the sales agreement between Tenor Health Foundation and MPT. As part of the deal, MPT will enter into a lease agreement with a purchase option for the property and provide a promissory note to support the continued operations of Sharon Regional Medical Center. The terms of the promissory note and sale price were not disclosed.

    The agreement is expected to finalize the sale of Sharon Regional this week, allowing the hospital to reopen after being closed since January 6. However, Buhl Legacy Trust still retains the right to file its own lawsuit against MPT.