Morrisey announces sale of four state-owned nursing facilities to NY-based investment firm
By Autumn Shelton, RealWV
CHARLESTON, WV – For at least a decade the ultimate fate of the Jackie Withrow Hospital, as well as three other state-owned long term care facilities, has been unknown. However, an announcement on Tuesday by Gov. Patrick Morrisey that these facilities will be sold to a New York based investment company has finally sealed the deal.
According to Morrisey, the Jackie Withrow Hospital in Beckley, Hopemont Hospital in Terra Alta, John Manchin, Sr. Health Care Center in Fairmont; and Lakin Hospital in West Columbia have been sold to Marx Development Group (MDG). The purchase price was $60 million.
“The sale of these facilities will relieve the state of significant financial strain,” Morrisey said. “Each of these facilities currently operates at a loss [$6 million per year] and needs serious capital investment, renovation and in some cases wholesale transformation.”
Morrisey said the state would need to invest over $100 million to rebuild and renovate these facilities, which contain 511 licensed beds. However, if the state were to renovate the facilities, the cost to operate them would continue to rise, to about $40 million per year, without an increased level of care for patients.
Part of the purchase deal made between the state of West Virginia and MDG includes the construction of new facilities to replace the “aging and costly” buildings, Morrisey stated.
“They will be building a minimum of three and up to five facilities,” Morrisey continued. “MDG is also committed to sourcing the labor and material for this construction from within West Virginia.”
MDG operates similar properties throughout the region serving over 5,000 licensed beds in five states, according to Morrisey. He said he anticipates MDG will provide additional resources, high quality healthcare and increased jobs for West Virginia.
Although the sale of these properties will provide revenue to the state, Morrisey said that more work needs to be done.
“We still face significant future financial challenges that includes additional changes to baseline on PEIA,” Morrisey said, adding that this includes between $35 to $49 million for the fiscal year 2027 budget.
Morrisey also said that between $170 to $194 million pertaining to education costs, including Hope Scholarship costs by 2027, is being considered by those in his administration as are financial changes being made in Washington DC.
Morrisey said the closing on the long-term care properties is scheduled for September 30, with a possible 30-day extension.
“We plan to clearly communicate [the sale] to the patients and we think that it’s going to be very seamless,” Morrisey said. “My hope is that the patients are going to be very happy that we’re looking at not only a transfer to the private sector, but we are looking at the build-out of new facilities, which is great news. From a quality perspective, I think it’s going to be positive.”
