The Times West Virginian

Local News

July 4, 2014

FGH one step closer to completing sale

Order signed by bankruptcy judge

FAIRMONT — Fairmont General Hospital moved one step closer to completing its sale to Alecto Healthcare Services Tuesday, when U.S. Bankruptcy Judge Patrick Flatley signed an order authorizing the sale.

“We’re very delighted to be actually partnering with Alecto Healthcare Services,” Peggy Coster, FGH president and CEO, said. “It means a lot for the city, the county, the community in general and the 700 employees of the hospital, so we’re very anxious to get started.

“And we’re looking forward to some great changes coming down the road.”

FGH will be sold for $15.3 million. $15 million will be due at the close of the sale, with an additional $300,000 due a year later.

FGH filed the motion to sell the FGH assets to Alecto on May 9. On May 20, the court approved the bidding procedures and sales process. A deadline for qualified bids was set for June 12 at noon.

Because no qualified bids were received by the deadline, the scheduled auction was canceled, and a sales hearing was held June 23 in Wheeling.

By the time of the sales hearing, court documents indicate that the limited objections that had been filed to the sales motion, with the exception of a motion filed by the U.S. Department of Health and Human Services (HHS), were resolved satisfactorily, so the sale could move forward.

When the sale is closed, according to bankruptcy code, the sale will be free of any “liens, claims, interests or encumbrances.”

This proved concerning for HHS. The West Virginia Department of Health, Bureau of Medical Services filed a claim of over $5.4 million in obligations owed by FGH for obligations from its Medicaid Provider Agreement. The claim was resolved for $216,000 from FGH.

At the close of the sale, Alecto will assume FGH’s Medicaid Provider Agreement. It will also assume FGH’s Medicare agreement, to receive payment for services provided to Medicare beneficiaries. According to the asset purchase agreement, Medicare payments to Alecto may be adjusted to deal with previous over or underpayments that could be from cost periods before or after the sale.

FGH filed for Chapter 11 bankruptcy Sept. 3, 2013. After filing for Chapter 11 bankruptcy in September 2013, FGH explored other partnership and restructuring strategies, and identified Alecto as a potential strategic partner.

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

FGH has operated as an independent non-profit since 1985. The purchase of FGH by Alecto will make the hospital a for-profit operation.

According to a document filed May 9, the hospital first “began to experience recurring operating losses and cash flow concerns” in 2008.

Email Colleen S. Good at or follow her on Twitter @CSGoodTWV.


Text Only
Local News
  • Some county schools offer free lunch, breakfast

    They say there’s no such thing as a free lunch.

    July 28, 2014

  • Boil-water notice lifted

    The boil-water notice issued for School Street in Barrackville and surrounding areas has been lifted.

    July 28, 2014

  • Monongah water plant receives positive report

    The Town of Monongah’s water plant has received a positive report — with no violations — from the state.

    July 28, 2014

  • Morgantown man charged with sexual abuse

    A Morgantown man has been arrested for the rape of a 12-year-old girl in Marion County.

    July 28, 2014

  • Storm Cleanup Cleanup continues after storms

    Residents and emergency crews continued to clean up the mess Monday from Sunday evening’s storms.

    July 28, 2014 1 Photo

  • Gayle Manchin: Issue of Common Core Standards has been politicized

    The state didn’t do a very good job of “telling the story” of Common Core Standards, state school board president Gayle Manchin said Monday morning, which opened the door for an onslaught of public and administrative criticism of something few understand.

    July 28, 2014

  • Purple Heart Memorial fundraising continues

     Despite three years of fundraising, a memorial remains unfinished.
    The Purple Heart Memorial was planned three years ago. It is part of the Vietnam Memorial at the Wave Tec Park and was planned to honor all of those who were wounded or killed in action in any war.
    Danny Greene has been working to complete the memorial since the project began. He is a member of the local Purple Heart Chapter.

    July 28, 2014

  • End of Fairview water project on tap

    Officials say the Fairview water line extension project is on track to meet the goal of making water available to all new customers by the end of this week.
    Fairview Mayor Arley Simmons said workers have recently been busy pulling samples and flushing the lines in order to get new customers hooked up for water service.
    “It should have been done a year ago,” he said of the project.
    However, the end of the endeavor is now nearing completion. The hope has been to have everybody on line before this month is over, Simmons said.

    July 28, 2014

  • Barbara Yanero.jpg Like a Springsteen song

     Barbara Yanero grew up in Monongah, on Shaver Street. The street has a long history. For quite some time, Polish and Italian immigrants lived on that street.
    Yanero’s family started living there with her great-grandparents, who moved there around 1927. Later, her great-grandfather made a house for her grandmother and grandfather out of a barn that was already on the property.
    “He was an amazing human being,” Yanero said. “And my mom and dad ended up living there as well, and now me.”
    In Monongah, the neighbors formed a tight-knit group.

    July 28, 2014 1 Photo

  • Local water project nearing completion

    Officials say the Fairview water line extension project is on track to meet the goal of making water available to all new customers by the end of this week.

    July 27, 2014

Featured Ads
TWV Video Highlights
NDN Editor's Picks
House Ads