The sale of Fairmont General
hospital for $15 million to Alecto Healthcare Services was approved Monday in
U.S. Bankruptcy Court or the Northern District.
The scheduled hearing was to
officially award the sale to Alecto since no other legitimate contenders
submitted bids and resolve the nine objections against the sale
Last week, U.S. Attorney William
Ihlenfeld filed one such objection on behalf of the U.S. Department of Health
and Human Services in U.S. Bankruptcy Court in Wheeling
The filing stated the sale would
violate federal law by preventing full repayment of money owed on Medicare
contracts. Instead, the sale proposes to set limits of up to $1.5 million for
repayment on three contracts.
The transfer of a Medicare provider
agreement is strictly regulated, according to the filing.
This objections was overruled and
the other eight were resolved before 4 p.m., when the sale was approved.
The actions on the sale, which will
be closed on in the coming months, allows Alecto to take over Fairmont General,
which filed for Chapter 11 bankruptcy protection last September.
