FAIRMONT, W. Va. — The transfer of Fairmont General Hospital to a private company which won the bid to buy it out of bankruptcy has been approved by the state Economic Development Authority.

Alecto Healthcare Services, a California-based company, was awarded the hospital on Thursday after the WVDEA approved a resolution to acquire the property and then transfer it to Alecto, releasing the authority and the city of Fairmont from any liability connected to the sale or the property itself.

Earlier this year, Alecto won the rights to the facility with a $15.3 million bid after FGH filed for Chapter 11 bankruptcy in September, 2013.

U.S. Bankruptcy Judge Patrick Flatley approved the sale, provided no late bid brought about an auction. Other companies had until June 12 to submit their bids, but none did.

Nine objections to the sale were later either dismissed or resolved on June 23 in U.S. Bankruptcy Court for the Northern District in Wheeling.

The WVEDA had to be involved because state code prevents municipalities from selling property directly to corporations and Fairmont owned the property.

Alecto said they have conducted extensive analysis of the marketplace in order to develop a strategy for the 207-bed facility.

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Comments

  • David Kennedy

    15 million is about 25% of what this hospital is worth.
    I wonder who sits on the board of directors of this company?

    • David Kennedy

      I took some time to study this company...
      Are we in for a 'ride.
      So typical for West Virginia.
      I hope Hoppy will do some investigative reporting on this company and this deal...it smells.
      How about it, Hop? Great Story...Award winning!