Council Votes to Amend Hospital Zoning Ordinance

In a unanimous vote, Ellwood City Council voted on August 19 to amend the hospital/medical district zoning ordinance that they originally passed in May. The proposed amendment will be sent to the borough and Lawrence County planning commissions for review.

The amendment adds to the definition of “Health Services” “facilities and residences included in a continuum of care entity.”

Borough Manager David Allen said the wording basically boiled down to nursing homes.

Solicitor Ed Leymarie said during an Aug 12 agenda meeting that the move will resolve an appeal filed by Penn Med LLC, a lender who is seeking a more than $5 million judgement against Americore Health LLC, Ellwood Medical Center LLC, and Ellwood Medical Center Real Estate LLC.

During a public hearing in April, Benjamin Steinberg an attorney representing Penn Med LLC expressed opposition to the zoning district. He said it was his client’s opinion that the zoning would be an “unconstitutional taking.”

“Multiple confessions of judgement that were entered into the Lawrence County Court of Common Pleas are still active,” Steinberg said during the April hearing. “However my client, at this time, has not yet executed on them. With that said, it is not my clients intention to foreclose on the hospital. Penn Med’s main goal is simply to get paid what they are owed by Americore.”

It was reported that Penn Med LLC withdrew that judgment without prejudice on July 29, saying it had received partial settlement of its debts from Americore Health LLC, the Florida-based owner of the hospital.

The hospital’s future came into question soon after it was purchased in 2017 by Americore Health, a Fort Lauderdale, Fla.-based privately held company that specializes in acquiring and managing rural hospitals. Americore and Ellwood City Medical Center were under fire for months over claims that employees and vendors have not been paid in a timely manner.