Sharon Regional Health System employees faced a delayed payday, with funds failing to hit accounts on schedule due to issues involving wire transfers and funding.
While hospital leadership confirmed that transactions were completed by Tuesday, the repeated payroll disruptions follow months of financial instability, tax liens, and vendor lawsuits stemming from the facility’s ownership transition.
Consecutive Pay Disruptions Strain Hospital Morale
According to employee reports, deposits finally posted to accounts between late Tuesday afternoon and Tuesday evening, days after the scheduled payday. The disruption follows a similar payroll snafu two weeks prior.
Interim CEO Peter Bastone sent an email to staff on Monday explaining that while funding had been secured and validated, the wire transfer failed to clear properly into the hospital’s bank accounts. On Tuesday, Bastone followed up with staff to confirm that the transaction of funds for payroll was complete.
Staff Sacrifice as Emergency Department Workers Shoulder the Burden
Employees utilizing one specific bank reported seeing funds deposited around 5:30 p.m. Tuesday, while others saw deposits post after 6:45 p.m.
The repeated delays have created severe strain for staff, many of whom have pulled extra shifts and purchased supplies with their own money to support the hospital’s stability.
Paul Tobin, a four-year emergency department employee, noted that staff retention and morale face mounting pressure when workers struggle to receive timely wages.
Tenant Evictions and Multi-Million Dollar Tax Liens Follow Acquisition
The payroll issues unfold against a backdrop of deep financial distress for the healthcare provider.
Tenor Health Foundation Sharon LLC, a nonprofit, purchased Sharon Regional Health System on January 22, 2025, and began reopening the facility in phases on March 18, 2025. The hospital’s previous for-profit owner, Steward Health, closed the Sharon hospital on January 6, 2025, after filing for bankruptcy.
Despite the reopening, Tenor Health and Sharon Regional were hit in August with federal and state tax liens upwards of $3.5 million. Several civil suits have also been filed against Tenor and Sharon Regional by vendors and physicians for non-payment of services. Court records show that GMH Heritage Garden Way LLC, the hospital’s landlord for satellite medical locations with specialty services on Garden Way in Hermitage, filed for eviction due to non-payment of rent.
Leadership Vows to Fight Through Administrative Friction
Radha Savitala, chairman and CEO of Tenor Health Foundation Sharon LLC, addressed employee concerns on Monday, expressing commitment to resolving the financial hurdles.
“I swear to you, I am fighting every hour of the day for Sharon Regional,” Savitala told The Herald.
Despite the administrative and financial friction, hospital leadership and staff continue efforts to stabilize operations at the facility as it works through the phased reopening process following the Steward Health bankruptcy.
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