Alecto Healthcare Services, a four-hospital system in Irvine, Calif., finalized its purchase of Wheeling, W.Va.-based Ohio Valley Medical Center and Martins Ferry-based East Ohio Regional Hospital Wednesday, according to The Intelligencer.
Under the agreement, Alecto Healthcare will acquire the two facilities from parent company Ohio Valley Health Services and Education Corp., in Wheeling. The facilities will operate as for-profit entities.
Officials said the institutions' administrative departments will be restructured. Michael Caruso, president and CEO of OVHSE, will exit his role once the transaction closes. Hospital leaders did not specify if other members of the executive management team at any of the institutions would also depart from their roles.
Officials did not specify if Ohio Valley Medical Center and East Ohio Regional Hospital would retain their branding once the transaction closes, according to the report.
The organizations also entered into a memorandum of understanding under which the city of Wheeling will pay $1.5 million in capital repairs and provide an additional $1.5 million for the demolition of the former nurses' residence building at Ohio Valley Medical Center, officials said.
Lex Reddy, president and CEO of Alecto Healthcare, told The Intelligencer: "We are excited to expand our operations to the Ohio Valley. We are a community-focused healthcare system and we are looking forward to supporting and working with the physicians, employees and the residents on both sides of the river."