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The $60 million sale of four state-owned health care facilities has been finalized, according to a press release from Gov. Patrick Morrisey that went out over the weekend.
The new owners of Hopemont Hospital, Jackie Withrow Hospital, John Manchin Sr. Health Care Center, and Lakin Hospital is Marx Development Group (MDG) and MDG subsidiary Majestic Care is taking over operations.
MDG has committed an additional $80 million by building at least three new long-term care facilities, using local labor and materials wherever possible.
“This marks an important milestone in our work to strengthen healthcare services and modernize the state’s operations,” Morrisey said. “West Virginia patients can look forward to enhanced care, modernized facilities, and a commitment to quality care. This is another step forward in improving care outcomes for our patients while protecting taxpayer dollars.”
Additionally, MDG has agreed to continue the leasing agreement with FMRS Health Systems and the Division of Corrections and Rehabilitation (DCR) located on the Jackie Withrow Hospital property for a term of two years. At the conclusion of the two year term, the parties have the option to renew the lease on an annual basis for an additional five years if both parties agree to the extension.
All employees of the four long-term care facilities have the opportunity to continue their employment with the new ownership at the same compensation and tenure being fully recognized by the new company.
Before the sale, the state-operated facilities were running at a loss of about $6 million per year, with future costs projected to continue rising from the current level of around $40 million per year.
Recently, acting as a private attorney, Sen. Joey Garcia, D-Marion, filed a motion to stop the sale on behalf of his client Mary Devito, a resident of the facility.
Marion County Circuit Court Judge Matthew S. Delligatti issued a temporary restraining order but then lifted the order shortly afterwards following a hearing saying the governor did have the legal authority to sell the facility.
In August, Morrisey announced plans to sell four state-run medical facilities: 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 by the end of September.
At the time, Morrisey said the hospitals are licensed for 511 beds, although not all of them are currently in use.