Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

California Company to Purchase Bankrupt Fairmont General Hospital

Fairmont (W.Va.) General Hospital's board of directors has chosen Alecto Healthcare Services, a private firm based in Los Angeles, as its initial buyer, according to a WBOY report.

This past September, the 207-bed Fairmont filed for Chapter 11 bankruptcy, a move executives said was "necessary" before merging with another organization. In the aftermath, Fairmont CEO Robert Marquardt and CFO Dan Honerbrink resigned from their positions.

The deal between Fairmont and Alecto is pending approval from the bankruptcy court, and there will also be an auction for further bidding. Alecto owns and manages two other acute-care hospitals: St. Rose Hospital in Hayward, Calif., and Olympia Medical Center in Los Angeles.

Lex Reddy serves as Alecto's CEO, while Roger Krissman is the company's CFO. Both were previously CEO and CFO of Prime Healthcare Services, a for-profit hospital chain based in Ontario, Calif. Mr. Reddy resigned from his position in February 2012. At the time, Prime was under fire for allegedly inappropriate billing practices.

More Articles on Hospital Transactions:
Mercy Health, McCullough-Hyde Memorial Call Off Affiliation
Salem Health, OHSU Negotiating Affiliation
UW Medicine, Capital Medical Center Announce Partnership

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars