WHEELING, W.Va. — A hearing is scheduled Monday regarding the sale of Fairmont General Hospital to Alecto Healthcare Services.

U.S. Bankruptcy Judge Patrick Flatley signed-off on the procedures and approved the sale to Alecto for roughly $15 million, provided no late bid brought about an auction.

Other companies had until June 12 to submit their bids, but none did.

However, federal health officials are opposing the planned sale.

U.S. Attorney William Ihlenfeld filed the objection last week on behalf of the U.S. Department of Health and Human Services in U.S. Bankruptcy Court in Wheeling.

The filing stated the sale would violate federal law by preventing full repayment of money owed on Medicare contracts. Instead, the sale proposes to set limits of up to $1.5 million for repayment on three contracts.

The transfer of a Medicare provider agreement is strictly regulated, according to the filing.

The case is being heard in the U.S. Bankruptcy Court for the Northern District of West Virginia in Wheeling.

Fairmont General filed for Chapter 11 bankruptcy protection last September.

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy.

bubble graphic

bubble graphic