CHARLESTON — Gov. Patrick Morrisey on Tuesday announced the sale of four long-term state-owned hospitals to a private operator, a move he says will save taxpayers millions while improving patient care but which has already drawn fire from Democrats and some establishment Republicans.
Hopemont Hospital in Preston County, Jackie Withrow Hospital in Beckley, the John Manchin Sr. Healthcare Center in Fairmont, and Lakin Hospital in Mason County will be sold to the Marx Development Group for $60 million. The New York-based company operates about 50 long-term care facilities across five states, including Ohio and Kentucky.
Under the agreement, Marx Development Group will build three to five new facilities in West Virginia, with labor and materials sourced within the state. Morrisey said the deal will help address decades of underinvestment while avoiding a projected $6 million annual loss and more than $100 million in needed renovations.
“Each of these facilities operates on a loss and needs serious capital investment, renovation, and in some cases, wholesale transformation,” Morrisey said at a press conference in Charleston. “The sale of these facilities will produce significant revenue, spur investment, and raise the quality of care.”
The announcement comes after nearly a decade of discussion over the future of state-run healthcare facilities. West Virginia’s government has historically operated a network of long-term care and psychiatric hospitals, a model that dates back to the early and mid-20th century when state governments across the country assumed direct responsibility for such institutions.
Critics, however, say the model has become financially unsustainable. Morrisey and other Republican leaders have argued that government should not serve as the primary provider of healthcare, pointing out that most advanced nations rely on private or mixed systems. Supporters of privatization say state control of hospitals reflects policies more often found in communist regimes, where healthcare delivery is exclusively run by the government.
Morrisey explained that jobs would be preserved, with many existing employees expected to remain under the new operator. He also signaled that additional sales could be considered in the future.
“We still have a number of facilities that we haven’t sold yet,” Morrisey said. “Some may be in different circumstances than these four, but we will continue to explore options that make sense for taxpayers and patients alike.”
The deal is expected to close at the end of September, with the possibility of a 30-day extension.
