Council Approves Amendment to Hospital Zoning Ordinance

In a unanimous vote Monday night, Ellwood City Council agreed to amend the hospital/medical district zoning ordinance that they originally passed in May.

The amendment adds to the definition of “Health Services” to mean: “Medical care facilities, facilities and residences included in a a continuum of care entity, as well as establishments providing support to the medical profession and patients, such as medical and dental laboratories, blood banks, oxygen and miscellaneous types of medical supplies and services.

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 was 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 originally proposed 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.