Beckley, WV — West Virginia finalized a $60 million sale of four state-run long-term care hospitals on Friday, transferring the facilities to New York-based Marx Development Group and ending decades of public ownership of key safety-net sites across the state.
The deal includes a pledge from the buyer to invest an additional $80 million in new or renovated buildings over the next several years, according to state documents and company statements. No immediate closures are planned, officials said.
The facilities include Jackie Withrow Hospital in Beckley, Hopemont Hospital in Terra Alta, John Manchin Sr. Health Care Center in Fairmont, and Lakin Hospital in West Columbia. Together, they serve hundreds of mostly Medicaid-reliant residents in rural communities and employ roughly 500 staff.
Gov. Patrick Morrisey cast the sale as a turning point after years of deferred maintenance and budget strain. “This $60 million transaction ends decades of neglect and injects vital private investment into West Virginia’s healthcare,” he said in a Friday statement, adding that Marx’s investment “ensures modern facilities for our most vulnerable.”
Court clears the way after late legal challenge
The closing followed days of legal uncertainty. A temporary restraining order that briefly halted the transaction was lifted Wednesday by Marion County Circuit Judge David Sandroni, allowing the state to proceed. Unions led by the West Virginia AFL-CIO have argued in court filings that the administration bypassed required legislative approval for a sale of this size. An appeal is expected to continue into 2026, but the court’s decision this week permitted the transfer of ownership.
State leaders have framed the sale as both a fiscal and operational reset, pointing to an estimated $50 million maintenance backlog and yearly operating costs. The administration also moved in recent days to address pension questions for state workers, reaching a late agreement on certain vesting issues. Details on retention bonuses or severance packages remain unclear.
In Beckley, families say communication has lagged
While the sale closed, tensions in Beckley persist over how the transition is being communicated. Families of Jackie Withrow residents say they received limited notice about potential transfers and timelines. “Communication has been a nightmare — no letters, no meetings,” one relative said, asking not to be named to protect their family’s privacy. “My aunt has dementia; how do we know she’ll get the same care under private hands?”
Particular concern centers on a specialized unit at Jackie Withrow that houses about two dozen individuals under the custody of the West Virginia Division of Corrections and Rehabilitation. State officials have not provided a detailed public plan for those placements, prompting questions about continuity of care and security protocols.
In court this week, Health and Human Resources Secretary David Golden said the state has coordinated more than 100 safe transfers across the four facilities and that inmate relocations are underway under corrections protocols. Families and advocates say they want those plans in writing, with timelines and contact points for future moves.
Staffing, pensions and quality under new ownership
The workforce transition is another flashpoint. Union leaders warn that staffing could dip under private ownership, pointing to industry patterns that link lower nurse-to-resident ratios with poorer outcomes. “This fire sale bypasses the Legislature and endangers workers’ pensions and patients’ lives,” said Josh Sword, president of the West Virginia AFL-CIO, in a statement tied to the lawsuit.
Marx Development Group has pushed back on those concerns. “We are not cutting corners; our model prioritizes resident outcomes,” CEO Michael Marx said previously, adding there are no plans to close facilities and that upgrades will begin early next year.
Researchers and federal analyses have found for-profit operators tend to staff below nonprofit and public counterparts on average, a trend advocates say could prove especially risky in rural regions with limited alternatives. The state has said it will continue oversight through licensing, Medicaid participation requirements, and federal inspections.
What’s next
According to company statements, Marx plans to begin the first phase of renovation funding in early 2026, with roughly $20 million earmarked per site over several years. Regulators are expected to closely monitor the 90-day transition period for compliance with federal nursing home standards and state licensing rules.
For families in Beckley and elsewhere, the immediate priority is clarity: who to call, where their relatives will live if transfers occur, and how specialized units will be handled. As one relative put it, the sale may be done on paper — but the measure of success will be what happens next at the bedside.
