Lingering questions about the sale of state nursing facilities
By Stephen Baldwin, RealWV
On Tuesday, Governor Patrick Morrisey announced that the state was selling four of its seven nursing facilities.
Since then, readers have been asking questions about who the buyer is, what their history in nursing facilities is, whether the governor possesses the authority to sell, if the legislature permitted the sales, and what guarantees patients and families have been given by the Department of Health Facilities. We do our best to address those questions below based on our reporting.
Who is the buyer, Marx Development Group?
Marx Development Group (MDG) is led by David Marx, a lawyer and real estate developer in New York City. The company includes multiple divisions focused on acquiring new properties, financing, design, management, and construction.
The MDG division dedicated to health care services is called Majestic Care. They operate nursing facilities in several states, mostly in the midwest.
RealWV made multiple phone calls to MDG and Majestic Care over the last two days seeking additional information. Phone calls to the operator at the general number and phone calls to individual administrators were unanswered. Most mailboxes were not accepting messages. A message was left with Majestic Care CEO Paul Pruitt, but it was not immediately returned.
What is their history in running nursing facilities?
MDG (via Majestic Care) runs more than 50 nursing facilities according to Gov. Morrisey. Public real estate transactions show that they appear to be purchasing new facilities at a higher rate than they sell them. Earlier this year, they purchase six nursing facilities in Ohio.
The West Virginia Department of Health Facilities announced a comprehensive plan last month aimed at transforming the seven facilities owned by the state. Lument Securities LLC was contracted to facilitate the plan. They were paid $9,600 in July 2025, before one payment of $4,800 was returned.
A lawsuit filed by the Fair Housing Justice Center in New York alleges that MDG excludes certain patients.
“The FHJC began an investigation in January 2022 into Defendants’ ACFs, assigning testers to pose as family members of individuals seeking housing,” says a statement on their website. “According to the complaint, when FHJC testers inquired about admission for family members with certain disabilities, admissions staff discouraged their applications. Specifically, testers were told that family members who used wheelchairs or were incontinent would be refused admission.”
“Blanket policies that discriminate on the basis of disability withhold access to necessary care and support programs,” shared Cass Sicherer, the FHJC’s Disability Justice and Accessibility Legal Fellow. “Assisted living programs must assess potential tenants through comprehensive and individual assessments and cannot deny on the basis of an individual’s wheelchair use or incontinence status.”
Did the governor have the authority to sell?
Yes. In 2023, the legislature passed HB 2006. The bill’s principal purpose was to split the Department of Health and Human Services (DHHR) into three separate divisions, but it also included a provision granting the governor’s administration the authority to sell holdings such as nursing facilities.
Was the legislature involved in the sale?
No. The news came as a surprise to lawmakers, including Senate President Randy Smith, R-Tucker, who said he was “blindsided” by the news in a phone interview with his hometown newspaper this week. Hopemont Hospital is one of the four impacted nursing facilities and is located in Smith’s hometown of Terra Alta.
“That’s a little bit of a sore spot for me, not being at least notified or being involved in the negotiations,” Smith told WV News. “Right now I’m trying to get all the details. It doesn’t surprise me that it was done, but it surprises me that the leadership didn’t know what was going on.”
Smith did not immediately return a request for further comment from RealWV.
In 2017, Smith voted against the sale of Hopement Hospital, saying at the time he was concerned for the wellbeing of the patients and staff.
In 2023, however, Smith voted to split DHHR which also gave the governor the authority to sell the state’s nursing facilities.
Why was the sale necessary?
“The sale of these facilities will relieve the state of significant financial strain,” Morrisey said on Tuesday. “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.”
He argued that the state did not have the resources to undertake that work at this time, but he stated that MDG would be required to upgrade and renovate the existing facilities and build new ones.
Senate President Smith agreed with that, saying that private business was better equipped than state government to handle that work.
What guarantees have patients and families been given about the transition by the state’s Department of Health Facilities?
“No patient at the State’s long-term care facilities is going to be put out because there will be new owners. MDG is required to accept all current residents of these facilities,” says Gailyn Markham, spokesperson for the Department of Health Facilities. “The sale of the State’s Long Term Care facilities to MDG will increase the level of care provided to the patients, spur investment into the renovation and expansion of these facilities, and produce a significant amount of revenue for the state.”
Morrisey was asked on Tuesday if the patients at the four facilities had been notified of the sale, and he said they would be soon. Asked on Thursday if they had been formally notified yet, Markham said, “There will be more information in coming days for the employees and patients of these facilities as everyone involved wants a smooth and successful transition.”
What will happen to the state’s other three nursing facilities?
According to Markham, “At this time, we have nothing further to share on the status of the State’s other facilities outside of the Governor’s comments on the matter.”
When will Marx officially take ownership?
“The deal will close on or before September 30, 2025,” says Markham. “There is an option to extend this 30 days, to no later than October 31, 2025.”
Marx faces a lawsuit in New York for not taking patients in wheelchairs. Did that give the Morrisey administration pause?
“MDG is required to accept and add patients and maintain the same or substantially similar levels, types, and quality of care,” said Marhkam. “When deliberating over the final bidders, each of the companies went through due diligence and was thoroughly vetted. Companies of this size are often involved in litigation of different types over disputed allegations. We expect MDG to act in full compliance with all of West Virginia’s laws, including West Virginia’s Fair Housing Act and Human Rights Act, not to mention our regulatory structures, while operating in the state – and we have no reason to believe they won’t.
Stay tuned to RealWV for further updates on this story.
