WHEELING, W. Va. – The sale of Fairmont General Hospital for $15 million to Alecto Healthcare Services was approved Monday in U.S. Bankruptcy Court or the Northern District.
The scheduled hearing was to officially award the sale to Alecto since no other legitimate contenders submitted bids and resolve the nine objections against the sale
Last week, U.S. Attorney William Ihlenfeld filed one such objection 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.
This objections was overruled and the other eight were resolved before 4 p.m., when the sale was approved.
The actions on the sale, which will be closed on in the coming months, allows Alecto to take over Fairmont General, which filed for Chapter 11 bankruptcy protection last September.