Battle Over Ohio Valley Medical Center Sale Heats Up in Wheeling
Wheeling Hospital expressed interest
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WHEELING -- Attorney Thomas G. Casto on Tuesday said Wheeling Hospital has spoken to Ohio Valley Medical Center about acquiring it and "has no interest in seeing OVMC close."
In response, Michael Garrison, attorney for Alecto Healthcare Services -- the California firm that intends to purchase OVMC -- accused Wheeling Hospital of attempting "to create a monopoly on health care in the Ohio Valley."
Garrison, who doesn't represent OVMC, said he has not been involved in any discussions between Wheeling Hospital and OVMC regarding acquisition.
Earlier Tuesday, the West Virginia Health Care Authority set April 20 as the date for Wheeling Hospital's requested public hearing on Alecto's application for a certificate of need to purchase OVMC.
Casto filed Wheeling Hospital's request for a hearing Friday.
A certificate of need is required under West Virginia law for OVMC's sale.
Alecto, based in Irvine, Calif., announced on Jan. 27 its intent to purchase OVMC and its sister facility, East Ohio Regional Hospital in Martins Ferry.
In a statement issued Tuesday afternoon, Casto said, "In regard to our request for a certificate of need (CON) hearing, we have a statutory right as an affected party to do so. Hearing requests and hearings are commonly requested by health care providers who will be impacted by projects. In fact, over the years, OVMC itself requested such CON hearings on at least three occasions involving Wheeling Hospital, including the addition of two new medical services and a building expansion project."
Garrison said, "The fact of the matter remains that Wheeling Hospital waited until the very last day to request a hearing. They then attempted to ask the health care authority for a date later than was suggested for that hearing. And if they don't like the result, they then can appeal the decision at least three levels, all the way to the West Virginia Supreme Court of Appeals, and a decision won't be final until up to three years from today.
"In the meantime, this deal will unravel -- 1,500 jobs will be lost and 127 years of compassionate health care in the Wheeling community will be extinguished," Garrison predicted.
Casto said, "OVMC is a public asset in a situation that could adversely affect its future and that of its employees. It is true we have an interest in the facility, and have spoken to OVMC about acquiring it. OVMC has a role to the community and preserving jobs there is important to us."
Casto said, "The CON hearing serves as an opportunity for Wheeling Hospital and the public to learn about Alecto's plans. It will provide a forum for questions to be asked. Like Wheeling Hospital, OVMC is a nonprofit hospital. Alecto is an out-of-state, for-profit business. There is a stark difference between a nonprofit and for-profit enterprise, and the public needs to understand the full implication of this transaction and how it could affect the community."
Alecto's lawyer responded, "Wheeling Hospital apparently believes it's a bad thing for an out-of-state company to invest in Wheeling. Before Mr. Casto casts stones about Alecto being an out-of-state company, he ought to check the residency of R&V Associates and the for-profit nature of their arrangement with Wheeling Hospital."
Ronald L. Violi, Wheeling Hospital CEO, and Vincent C. Deluzio are the managing directors of R&V Associates, a business consulting and crisis management firm with headquarters in Pittsburgh. The firm's clients include Wheeling Hospital and Weirton Medical Center.
Casto's statement concluded, "We are not saying we are for or against the sale of OVMC. At this point, there is not enough information known about Alecto's proposal to form an opinion either way. We simply are attempting to learn more about the proposal in a public setting and whether it could adversely affect Wheeling Hospital and the community. Since Alecto is opposed to the public hearing, perhaps it has something to hide."
Garrison countered, "The only people hiding anything are the administrators at Wheeling Hospital. They are hiding the fact that their request for a public hearing is a thinly veiled attempt to create a monopoly on health care in the Ohio Valley. And, they are clearly hiding the fact that they just don't care about what happens to the patients and employees of OVMC."
The April 20 hearing date is nine days later than proposed originally. Casto objected Monday to a proposed April 11 date for the public hearing. Garrison said time is paramount to completing Alecto's acquisition of OVMC.
In a hearing order entered Tuesday, the health care authority also rescheduled a pre-hearing conference for April 14, a week later than proposed originally. In addition, the health care authority extended the deadline for filing replacement pages to the initial CON application until today; set a March 27 deadline for filing motions for discovery and ordered completion of discovery by April 7. The order also stated that dispositive and preliminary motions and subpoena requests are to be filed by April 11.
Ohio does not have a certificate of need process, but Alecto must secure approval from the Ohio attorney general, Ohio Department of Health and Ohio Department of Medicaid for its purchase of East Ohio Regional Hospital.