State pushes back $60M sale of 4 hospitals; WV Senate president concerned about employees’ pensions

by Amelia Ferrell Knisely, West Virginia Watch
September 19, 2025

The state of West Virginia has pushed back closing on the sale of its four long-term facilities to Oct. 31. The hospitals, many of which are deteriorating, typically serve elderly patients using Medicaid. 

Gov. Patrick Morrisey is selling hospitals in Beckley, Fairmont, Terra Alta and West Columbia to New York-based Marx Development Group for $60 million. Together the facilities are licensed for about 500 beds. 

Majestic Care, a subsidiary of MDG, will operate the facilities in West Virginia. 

“While the Department of Health Facilities, MDG and Majestic Care were hopeful that the transaction could be completed by Sept. 30, 2025, all parties understood that it might not be possible to accomplish the extensive and necessary tasks for a complete closing and transition of operations by that date,” DoHF Communications Director Gailyn M. Markham said. 

“This additional time will allow the parties to ensure a seamless transition of operations, employees, and residents, all of which remain top priorities for all parties,” she said.

There is a pending lawsuit, brought by a Democratic state senator on behalf of a patient, that seeks to stop the sale of John Manchin Sr. Health Care Center in Fairmont. A notice of suit said the sale was unlawful without the Legislature’s approval. Markham didn’t cite the lawsuit in its reason for the delay.

The four state-owned hospitals often house and take care of elderly patients — some with complex medical problems and disabilities — who have nowhere else to go. Many patients rely on Medicaid and can’t afford private care.

Morrisey has said the private company will make “significant investments” in the state and improve the level of health care. All of the facilities are operating at a financial loss to the state and need millions of dollars in repairs. MDG has agreed to build three to five new facilities to replace aging facilities though the locations are undetermined.

The governor’s office hasn’t yet released any records related to the sale, which was originally supposed to close at the end of this month. In response to a Freedom of Information Act Request, an attorney in the governor’s office said non-exempt documents will be shared Sept. 26.

Morrisey has also promised that the private company will retain patients and staff. The state has been heavily reliant on contract nurses to staff state-owned hospitals. 

Earlier this month, letters were sent out to state hospital employees asking them to indicate if they will apply for a position with MDG, explore retirement options or resign from their position with the state. Hospital employees shared the letter with West Virginia Watch. 

The state Department of Health Facilities confirmed a letter was sent. 

“As the DHF long term care facilities transition to new ownership under Marx Development Group (MDG), which will be operated by Majestic Care, our priority is to ensure employees are supported and that their preferences are respected throughout the process,” Markham wrote in an email. 

“MDG, and Majestic Care, have made it clear that current staff will be offered opportunities to continue their employment post-transition in addition to career pathways and training designed to help staff grow,” she added. 

Residents in Majestic Care’s nursing homes in Michigan, Ohio and Indiana receive around an hour less nursing care per day on average than residents at the state’s four hospitals, according to federal health agency reports and reported by Mountain State Spotlight. 

Majestic officials told the news outlet that the company meets all state and federal staffing requirements and that it offers competitive pay and benefits. 

Senate president wants to protect hospital employees’ pensions 

The company will offer private insurance, and 322 state employees at the four hospitals are insured through the state’s Public Employee Insurance Agency. A spokesperson for Morrisey said that “their removal from the PEIA system will not have a significant impact” on the financially troubled insurance program. 

Hopemont Hospital, one of the facilities being sold, is in the district of Senate President Randy Smith. 

“Most of the correspondence I’m getting is from people there at the hospital over their retirement,” he said on Thursday. “My concern is these employees that are close to retirement, or you know, or are invested to make sure that you know they’re protected, because it’s nothing to do with their fault.”

Smith is considering legislation to ensure state employees affected by the sale can retain their pensions. He has requested data from DoHF about the numbers of employees that are within a few years of retirement, he said.  

He’d like to see a special legislative session this fall to deal with the issue. 

“I’ve talked to several legislators, and you know they’re in agreement with me — it’s only fair to make sure that these people’s pensions are protected,” he said.

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West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.