Potential Lawsuit May Tie Up Sale Of Health Facilities

The sale of four state-run health facilities may be on hold because of a lawsuit. 

In his capacity as a private attorney, Sen. Joey Garcia, D-Marion, has given notice of his intention to sue Secretary Michael Caruso of the Department of Health Facilities and Gov. Patrick Morrisey on behalf of Mary DeVito, a resident of the John Manchin Sr. Health Care Center in Fairmont. The suit aims to stop the state from selling the center to Marx Development Group. 

When suing the state, plaintiffs must give 30-days notice before actually filing. 

“My client will also pursue a writ of mandamus requiring Secretary Caruso and the Department of Health Facilities to continue to maintain, administer and operate the John Manchin facility pursuant to the statutory requirements set forth in the DHHR reorganization bill,” Garcia said, 

On August 12, Morrisey announced the sale of the facilities. 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. 

The state will receive $60 million and there is a promise most of the staff will remain. The facilities lose money every year but legislation to sell them has repeatedly failed. 

Garcia asserts that the governor and Caruso don’t have the authority to make the sale. 

“There is no statutory authority for Governor Morrisey or Secretary Caruso to abdicate their administrative responsibilities to the patients of the John Manchin Sr. nursing home and other state-run facilities by selling them to Marx Development Group or any other private corporation,” Garcia wrote in an email. “Proposed legislation to privatize the John Manchin facility has repeatedly failed.”

Garcia said the governor’s office has failed to make public the written agreement to sell these facilities. 

“My client and other residents have many concerns but very little information other than a potential sales deadline of Sept. 30, 2025,” he said.  “The only way to protect the residents of John Manchin Sr. now is to fight this in court.”

A statement from the governor’s office said: “We are in receipt of the intent to sue and stand behind the legality of the sale. This common-sense sale will help advance quality for our most vulnerable citizens and produce real savings for taxpayers.”

A statement from the Office of Shared Administration for the West Virginia Department of Health said: “The Department of Health Facilities (DHF), in conjunction with the Governor, has the legal authority to divest the long term care facilities. Moreover, divestment of the long term care facilities provides the opportunity for increased levels of care to facility residents, will spur new investment, provide job opportunities to West Virginia workers, and, ultimately, will save West Virginia taxpayers millions of dollars. Residents of the facilities will continue to receive quality care from a highly successful company specializing in patient care, and substantially all current DHF staff will be retained by the new operator.”