Irvine, Calif.-based Alecto Healthcare Services filed a request to make its purchase of Wheeling, W.Va.-based Ohio Valley Medical Center exempt from the state's certificate of need requirement, following the passage of a bill by Democratic West Virginia Gov. Jim Justice, The Intelligencer reports.
The bill, which went into effect last week, 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 [obtaining a] certificate of need," according to the report.
Representatives for Alecto Healthcare said while OVMC is not in bankruptcy or receivership, the facility meets other definitions of financial distress listed in the bill, according to the report.
Alecto Healthcare previously filed a certificate of need to purchase OVMC Feb. 6.
Alecto Healthcare initially revealed plans to acquire OVMC and Martins Ferry-based East Ohio Hospital Jan. 27. Wheeling (W.Va.) Hospital officials protested the transaction and asked the West Virginia Health Care Authority to mandate a public hearing on the purchase. The meeting was scheduled for Thursday, according to the report. However, Alecto Healthcare and Wheeling Hospital officials elected to suspended the hearing indefinitely due to the passage of the bill, according to the report.