West Virginia Governor Patrick Morrisey Sells State Healthcare Facilities to MarkX Development Group

Sale of State-Owned Healthcare Facilities

• 🔑 Governor Patrick Morrisey announced the sale of four state-owned long-term care facilities, a process that has been in the works for over 10 years.
• 🏥 These facilities, located in Terara, Alta, Hopemont, Raleigh County, Fairmont, and Mason County, have a combined 511 licensed beds and are currently operating at a loss.
• 💰 The state government aims to reduce long-term costs and financial strain by divesting these underperforming assets.

New Ownership and Investment

• 🤝 The MarkX Development Group (MDG) has been selected to purchase these facilities for $60 million.
• 🏗️ MDG has committed to investing in West Virginia by constructing a minimum of three to five new facilities to replace the aging structures.
• 📈 This investment is expected to spur job creation and economic activity within the state, with MDG prioritizing the sourcing of labor and materials locally.

Rationale for Divestment

• 💡 The state government identified the operation of these long-term care facilities as a function not performed efficiently by the government.
• 💸 Investing over $100 million to renovate and rebuild the existing facilities was deemed too costly, with operating costs projected to continue rising.
• 🎯 The sale allows the state to avoid significant future capital expenditures and operating losses, while improving the quality of care for patients.

Impact on Jobs and Services

• 👥 MDG has agreed to retain a substantial portion of the existing staff, ensuring job continuity for many employees.
• ✨ The transition is expected to be seamless for patients, with a focus on improving the quality of care and providing modern, high-tech medical services.
• 🗓️ The closing date for the sale is set for September 30th, with a possible 30-day extension.

Government Efficiency and Future Plans

• 🚀 This sale is part of Governor Morrisey's broader initiative to repurpose state government and drive efficiencies by partnering with the private sector.
• 📉 The administration plans to continue seeking opportunities to reduce the number of state departments and agencies to improve efficiency.
• 💰 Discussions regarding the allocation of the $60 million sale revenue will involve the legislature, adhering to the state's appropriation process.