Saint Catherine’s Pa. LTC Facility Might Go to Market After Chapter 11 Bankruptcy Filing

Saint Catherine’s Hospital of Pennsylvania, LLC filed for Chapter 11 bankruptcy protection on Monday following the recent closure of its Fountain Springs medical center, which includes a long-term care facility, reports the Republican Herald.

The last of Saint Catherine’s long-term care residents are transferring to other facilities after a state Department of Health complaint investigation revealed it was not in compliance with state licensure and federal Medicare and Medicaid regulations for hospitals, the Republican Herald previously reported.

Saint Catherine Medical Center-Fountain Springs’ long-term care center began moving residents to other nursing or personal care facilities last week, with 13 of the 24 residents finding places to live, and the remaining 11 residents waiting for vacancies in order to transfer, the article says.


The transitions are being facilitated by consulting firm Complete Healthcare Resources-Eastern Inc. of Dresher, Pa., which was brought in by the state Department of Health.

An investigation that was completed on March 23 discovered “serious deficiencies and violations of applicable regulations that [the DOH] felt posed a significant threat to the health and safety of the patients at the facility,” reports the Republican Herald. Saint Catherine’s was banned from getting any new admissions immediately following the investigation, and on March 30, the medical center’s hospital patients were transported to other facilities.

Saint Catherine’s future is uncertain.


“We do not agree with some of the findings and are currently working on a plan to address and appeal those findings,” said Merlyn Knapp, president and CEO at Saint Catherine Medical Center, in a statement posted on the organization’s website. “We are evaluating all future options for Saint Catherine Medical Center, including a potential sale and re-opening of the hospital.”

Attorney William G. Schwab has been appointed by the Department of Justice as the Chapter 11 trustee of the medical center and is charged with running and reorganizing the failing business. He says he’s hoping to turn the care facility around, and will be responsible for handling inquiries for outside parties interested in purchasing the facility.

Read more about the bankruptcy filing here.

Written by Alyssa Gerace