Story By Amelia Ferrell Knisely of West Virginia Watch
Gov. Patrick Morrisey’s $60 million sale of West Virginia’s four long-term nursing homes closes Friday, placing the facilities under private ownership after many lawmakers for years have said no to the change.
The hospitals, which mostly serve elderly patients using Medicaid, were operating at $6 million annual financial loss to the state.
The buyers, New York-based developer Marx Development Group and its subsidiary, Majestic Care, are contractually required to build at least three new hospitals on a set timeline, according to documents obtained through a public records request. The four hospitals need $3.9 million in deferred maintenance.
Majestic Care could potentially build the new hospitals in undetermined locations because it isn’t required to rebuild at the current hospital sites.
In Beckley, local officials still have many questions and concerns about the future of FRMS Health Systems that operates on the same property as Jackie Withrow Hospital, which is being sold.
“FMRS is on the same tract of land, and I guess nobody even considered that when they decided they wanted to sell this thing to somebody,” said Raleigh County Commissioner Daniel Hall. “FMRS provides tons of valuable services through Raleigh County and three other counties. We just can’t allow this to just go away.”
FMRS offers adult and children’s behavioral health services, including outpatient psychiatric services. It’s one of the state’s 13 comprehensive behavioral health centers and includes crisis stabilization that helps people get stabilized to prevent them from being hospitalized.
“We keep a lot of people out of the hospital and keep them functioning in the community,” said Randy Venable, chief executive officer at FMRS.
With the sale being finalized, Venable said it was unclear what would happen in the future.
“To have to relocate with short notice, it would be very difficult for sure, because I don’t know of an existing building that we could move into in short notice,” he said. “Of course, the financial strain would be pretty significant as well.”
“You don’t really know what’s going to happen with a private entity,” he added.
Majestic Care did not respond to an email with questions for this story.
The Raleigh County Commission sent a letter to the governor earlier this month asking that the FMRS facilities be carved out from the sale of Jackie Withrow, but the sale wasn’t changed.
“What I had proposed to the governor’s office is there’s 9.2 acres, what I call below the road that separated from the Jackie Withrow hospital, then that could easily be cut out of this sale,” said Raleigh County Attorney Bill Roop, who also serves in the state House of Delegates.
The state’s contract with MDG requires the company to assume the lease agreement between FMRS two years with the possibility to renew. If they terminate it, the company would have six months to relocate, according to Venable.
“If two years from now they decide to use this property for something else, we’ve been given a six month period to try to figure out how to relocate, which would be probably next to impossible,” he said.
Jackie Withrow hospital also contains incarcerated individuals with the Division of Corrections and Rehabilitation. The state’s jails are overcrowded, and DCR would have to absorb the inmates should Majestic Care decide that it no longer wants to operate a floor for corrections.
Hall said Raleigh County officials spoke with the governor’s office over the issue ahead of the sale closing date.
“They’ve listened to what we’ve told them … but, there’s been no response really, no direction of what’s going to happen,” he said.
Morrisey didn’t return a request for comment about communication issues surrounding the sale of Jackie Withrow.
“I think it’s very important that everybody knows what’s going to happen — FRMS and [corrections], because this is not something that we can just pack our bags and move out tomorrow,” Roop said. “I think the sooner that we have a permanent plan, the better. I mean longer than two years.”
Sen. Rollan Roberts, R-Raleigh, also hoped that there’d soon be a long-term plan for FMRS.
“With COVID and the challenges of society these days, I think, more than than ever, we need to have these kinds of facilities available so that we can help people with their mental health issues,” he said.
Earlier this week, a judge ruled that Morrisey and Department of Health Facilities Secretary Michael Caruso had legal authority to sell the long-term care hospitals without the Legislature’s approval based on a 2023 bill that created the facilites department.
During the hearing, lawyers representing Morrisey said around 90% of employees are staying on to work with Majestic Care. Additionally, the company has committed to keeping current patients.
Morrisey told reporters that the sale “is a better deal for all the people that are getting care of those facilities.” “I’m excited about that,” he added.
