Gov. Patrick Morrisey said West Virginia has finalized the sale of four long-term care facilities to Marx Development Group, a privately held, full-service real estate development firm based in Fresh Meadows, N.Y.
The $60 million sale includes Hopemont Hospital in Terra Alta, Jackie Withrow Hospital in Beckley, John Manchin Sr. Health Care Center in Fairmont and Lakin Hospital in West Columbia. The state first announced plans for the sale in August, and the transaction was finalized Nov. 1.
As part of the deal, MDG has committed an additional $80 million to build at least three new long-term care facilities in West Virginia to replace the state’s aging and costly structures, the governor said. The firm also agreed to use local labor and materials whenever possible.
Additionally, MDG has agreed to continue the leasing agreement with FMRS Health Systems and the Division of Corrections and Rehabilitation on the Jackie Withrow Hospital property for a two-year term, with an option to renew annually for up to five additional years if both parties agree, Mr. Morrisey said.
Employees of the four long-term care facilities will continue their employment under MDG, with their current compensation and tenure fully recognized by the new owner.
According to the firm’s website, MDG’s portfolio includes 2,000 beds in nursing or assisted living facilities. Together, the four facilities — which, before the sale, were running at a loss of about $6 million per year — have 511 licensed beds and will be operated by MDG subsidiary Majestic Care.
“This marks an important milestone in our work to strengthen healthcare services and modernize the state’s operations,” Mr. Morrisey said in his office’s news release. “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.”
