CHARLESTON, W.Va. – Today, Governor Patrick Morrisey announced that Marx Development Group (MDG) has agreed to purchase West Virginia’s four long-term care facilities for $60 million. As part of the sale, MDG has agreed to make significant investments in the state, building a minimum of three and possibly up to five new facilities while sourcing labor and materials from within West Virginia.
“The sale of West Virginia’s long-term care facilities 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,” said Governor Morrisey. “Marx Development Group brings to the table a remarkable breadth of resources and extensive experience in renovating and improving healthcare facilities that are in need of thoughtful investment. This is a win for West Virginia’s patients and a win for the taxpayers of our state. I want to thank Secretary Caruso, Secretary Nelson, Curtis Capehart, and the entire team who made this possible.”
Before the sale, West Virginia had owned and operated four long-term care facilities: Hopemont Hospital; Jackie Withrow Hospital; John Manchin, Sr. Health Care Center; and Lakin Hospital. The facilities currently operate with a $6 million yearly loss, and the long-term costs are projected to continue rising from the current level of around $40 million per year.
MDG is a patient-oriented owner and operator of similar long-term care facilities in states around the region. MDG owns 55 properties through its subsidiaries with over 5,000 Licensed Beds. Majestic Care and Bluegrass Consulting Group, both post-acute providers, operate properties in Indiana, Michigan, New York, Ohio, and Kentucky. Across its properties, MDG and its partners have been highly successful at bettering the quality of care provided to clients and patients on a variety of metrics.