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The state plans to sell all four of its long-term residential care facilities by the end of September. The four facilities are Hopemont Hospital in Terra Alta, Jackie Withrow Hospital in Raleigh County, John Manchin Sr. Health Care Center in Fairmont and Lakin Hospital in Mason County.
Gov. Patrick Morrisey said the hospitals are licensed for 511 beds, although not all of them are currently in use.
“Marx Development Group, or MDG, has agreed to purchase these assets from the state of West Virginia for $60 billion,” Morrisey said. “And in addition, as part of the deal, MDG has also agreed that it would be investing in West Virginia to construct new facilities.”
He said MDG plans to build a minimum of three and possibly up to five new facilities while sourcing labor and materials from within West Virginia.
“The sale of West Virginia’s long-term care facilities will increase the level of care provided to the patients, spur investment into the renovation and expansion of these facilities, and produce a significant amount of revenue for the state,” Morrisey said. “Marx Development Group brings to the table a remarkable breadth of resources and extensive experience in renovating and improving healthcare facilities that are in need of thoughtful investment. This is a win for West Virginia’s patients and a win for the taxpayers of our state.”
The sale is expected to close on Sept. 30.
Morrisey said the sale will help the state avoid an estimated $100 million in costs to renovate the buildings and that the four facilities have been operating at a $6 million annual loss.
Marx is a patient-oriented owner and operator of similar long-term care facilities in states around the region. The company owns 55 properties through its subsidiaries with over 5,000 licensed beds. Majestic Care and Bluegrass Consulting Group, both post-acute providers, operate properties in Indiana, Michigan, New York, Ohio and Kentucky.