Alecto Seeks ‘Financially Distressed’ Tag in Ohio Valley Medical Center Issue
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WHEELING -- Alecto Healthcare Services has filed an official request to have Ohio Valley Medical Center declared "financially distressed," which would make its planned purchase of OVMC exempt from West Virginia's certificate of need requirement.
A bill signed by West Virginia Gov. Jim Justice last week created a certificate of need exemption for facilities in financial distress. The new law took effect immediately.
Alecto's attorney, Michael Garrison, said the information required by the new law was filed with the West Virginia Health Care Authority last week. The authority has not responded yet to the filing.
Meanwhile, a public hearing on the OVMC sale and a pre-hearing conference -- scheduled by the health care authority prior to the Legislature's passage of the new law -- have been put on hold indefinitely.
On March 17, Wheeling Hospital requested a public hearing on Alecto's application for a certificate of need for the purchase of OVMC. The public hearing was set to be held this Thursday in Charleston.
However, Garrison said, "Counsel for both parties have stipulated that the hearing and pre-hearing (as well as any remaining dates) are continued pending further notice and agreement between the parties. Since this is a joint stipulation, the hearing, pre-hearing and all other dates are continued pending further notice and agreement of the parties."
The new law states: "Any person purchasing a financially distressed hospital, or all or substantially all of its assets, that has applied for a certificate of need after Jan. 1, 2017, shall qualify for an exemption from certificate of need."
Garrison said OVMC is not in bankruptcy or receivership, but meets other definitions of financial distress listed in the bill.
The health care authority received Alecto's application for a certificate of need Feb. 6.
Alecto Healthcare Services, based in Irvine, Calif., wants to buy OVMC and East Ohio Regional Hospital in Martins Ferry from Ohio Valley Health Services and Education Corp. Alecto hopes to complete the transaction by mid- to late May.
The state of Ohio does not have a certificate of need process. Instead, the sale of EORH requires approval from Ohio Attorney General Mike DeWine.