The New York-based developer now operating four long-term care hospitals in West Virginia says it is making progress on brand-new builds, while lawmakers worry that the new facilities could move elderly patients and jobs out of their communities.
Marx Development Group and its subsidiary, Majestic Care, aren’t required to rebuild at the current hospital sites, according to a contract with the state. The four hospitals were previously under state ownership.
Senate President Randy Smith’s district includes Hopemont Hospital. He worries it could move out of the small town of Terra Alta, causing a ripple effect of job loss and economic downturn in a town of about 1,500 people.
“When it was a state agency, I could get any kind of information I wanted, but now that it’s a private entity, I really don’t have any access to information,” said Smith, R-Preston.
Gov. Patrick Morrisey sold the state-owned facilities for $60 million last year, saying Marx Development Group would retain the elderly patients – who often have nowhere else to stay – and improve their care. In 2024, a non-verbal elderly man died after being left too long in a whirlpool at one of the state-owned hospitals.
Morrisey told reporters that the sale “is a better deal for all the people that are getting care of those facilities.”
Under state operation, the hospitals had operated at a combined $6 million annual loss, according to Morrisey. Ahead of the sale, the four hospitals needed $3.9 million in deferred maintenance.
Marx Development Group and Majestic Care purchased Hopemont Hospital, Jackie Withrow Hospital in Beckley, John Manchin, Sr. Health Care Center in Fairmont; and Lakin Hospital in West Columbia. Together the facilities are licensed for about 500 beds.
“Operations across all four communities continue to go well,” said Chelsey Gheyara, vice president of growth and experience for Majestic Care.
“From day one, our focus has been supporting our residents, families and care teams while ensuring continuity of care. We’ve retained strong local leadership, continue to invest in our Care Team Members, and remain focused on delivering the high-quality, compassionate care our residents and families expect,” she said.
Majestic Care is contractually required to build at least three new hospitals on a set timeline. The first facility is expected to open in 2028, according to Gheyara.
“We’re making steady progress. The initial designs have been completed, and we’re now working through the architectural review, regulatory approval, and licensure processes required before construction can begin. While we’re not ready to announce specific locations, we’ll share additional details as each project reaches key milestones,” Gheyara said.
Lawmakers concerned about hospitals potentially leaving their towns
A potential move of Hopemont Hospital troubles Smith, because the hospital is one the largest customers for the town’s water and sewer department. Smith worried it could cause residents’ utility rates to skyrocket.
“That’s you know what I’m more concerned about,” Smith said. “It’s going to take some jobs away from this area, but economic impact for the town of Terra Alta is the biggest thing …
“(This) is going to be a huge hit to the town of Terre Alta with their water and sewer rates.”
Smith said he is working with another senator to bring other industry into the small town that could create jobs while also serving as a larger customer for the local water and sewer department.
Sen. Joey Garcia, D-Marion, has worried about whether Majestic Care’s facility in Fairmont would remain in Marion County.
The John Manchin Sr. Health Care Center means a lot to the community, he said, and there have been concerns about local jobs and residents remaining close to their family members nearby.
Local care “brings a level of dignity to the patients that they serve and proximity to families and other support systems that want to visit them all the time,” Garcia said. “There are a number of patients at the John Manchin Center that their family members show up almost every day.”
He continued, “I am frustrated because we got to one of the first deadlines where Majestic Care, by their contract, was supposed to identify potential sites for their new facilities.”
Garcia, who is an attorney, filed a lawsuit last year on behalf of a 94-year-old former resident of the John Manchin facility seeking to stop the sale. Garcia argued that Morrisey and his administration didn’t have the authority to sell the hospital without the Legislature’s approval.
A Marion County judge ruled against Garcia and his plaintiff, permitting the sale to close last November.
“I would do it again. I wish I would have won, that’s the only thing I would change about it … I think we were right,” Garcia said. “The woman that I represented, Mary DeVito, has since passed away. She was a tremendous advocate, and really, her caretaker was a tremendous advocate for the people that lived at the John Manchin facility.”
Since the sale closed, a Meals on Wheels program that operated out of the John Manchin facility has ceased operations on site due to increased meal prices under Majestic Care, according to the Times West Virginian. WVU Medicine’s Fairmont Medical Center stepped in to prepare daily meals for the Marion County Senior Center and the Meals on Wheels program.
In Mason County, Del. Jonathan Pinson said he and others in the community “were very disappointed to learn of employees who were let go” at Lakin Hospital.
“I have met with these employees and heard their stories. Small communities like ours depend on local jobs,” said Pinson, R-Mason. “I would encourage this company to continue their operations in Mason County and continue employing hard-working individuals from our area.”
Gheyara said that Majestic Care’s priority has been supporting residents and improving their experience.
The company has implemented tools and processes “that help ensure residents receive the high-quality, compassionate care they deserve,” she said.
“While we’re excited about the future construction projects and the opportunity to create state-of-the-art communities for both residents and care team members, our commitment begins with the residents we serve today,” Gheyara said. “The investments and decisions we’re making now are building a strong foundation for the future of senior care in West Virginia while ensuring our residents continue to receive compassionate, high-quality care every day.”
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