Hospital decision delayed until May
PITTSBURGH – The decision of whether matters involving the former Brownsville General Hospital will remain in Federal Bankruptcy Court or will be returned to Fayette County Common Pleas Court has been continued until May. Attorney John P. Vetica Jr., representing the nonprofit Brownsville Property Group, argued that matters involving the real and personal property at the hospital would best be served in the Common Pleas Court that initially approved the sale and lease agreement.
“Let the board of directors of the nonprofit entity find another entity to operate the hospital. Do not denude the facility of the assets it needs to operate,” Vetica said.
Under the Common Pleas ruling a year ago, the nonprofit group that previously ran the hospital retained ownership of the real estate while a for-profit group, Brownsville General Hospital Inc., took over operation of the hospital. The for-profit group in January voluntarily surrendered its operating license and filed for bankruptcy.
“If the debtor is now trying to liquidate the property of this enterprise, it goes against the intent of the Court of Common Pleas in Fayette County,” Vetica said.
Vetica argued that the lease required the for-profit group to maintain an acute care hospital and that if it did not, it was in violation of the lease agreement. The agreement, Vetica said, also called for the for-profit group to return the personal property in the event the lease was broken. The lease gives the for-profit group use of the property rent-free for three years.
Attorney Lawrence Bolo, on behalf of the for-profit BGH Inc. said his client purchased the personal property.
“We’ve got the right to sell that stuff and they have the right to show up to bid. When it’s all said and done, they still have their hospital. They just don’t have the stuff in it,” Bola said.
Bola also asked the court for a 90-day extension to remain in the facility before deciding whether to extend or reject the current lease. An extension would give the for-profit entity occupation of the hospital until August 24, allowing time for the property liquidation.
Attorney Kirk Burkley, representing the committee of unsecured creditors of the hospital, opposed allowing the case to return to Common Pleas Court and including the personal property in with the real estate matters.
“That would essentially gut the assets for the unsecured creditors. Right now it appears there will be some assets,” Burkley said. “While the debtor may be intent on rejecting this lease, the committee would like nothing more than for someone to come in and assume the lease and operate the hospital.”
Burkley argued that the for-profit group could conceivably sell the remaining two years of the rent-free lease and the option to buy the real estate to another entity that would run the hospital.
Vetica said the nonprofit board would most likely consider any reasonable proposal that would result in reopening the hospital.
Because of other matters scheduled before the court regarding the hospital, including a request for the matter to be returned to Fayette County court, Federal Judge Bruce McCullough decided to continue the case until May 2.