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Steel of WV files final appeal in Cabell Huntington, St. Mary's merger

Huntington-based Steel of West Virginia has made one final attempt to halt the proposed merger between Cabell Huntington (W.Va.) Hospital and St. Mary's Medical Center, also in Huntington, according to The Herald-Dispatch.

The company filed its final appeal of the health organizations' merger in November.

According to court documents, Steel of West Virginia contends the West Virginia Health Care Authority "committed an error of law" by granting the organizations' certificate of need request because it failed to consider "superior alternative" organizations to merge with St. Mary's, as required by law. The company also claims it has the right to obtain information regarding other parties interested in merging with St. Mary's to determine if Cabell Huntington represents the best option, according to the report.

Representatives for Cabell Huntington argue the state legislature's definition of "superior alternatives" is not clearly defined, leaving it up to the healthcare authority to determine how to interpret the "superior alternatives" requirement. The health system also said information about interested bidders would not be admissible in the proceedings, as outlined under the West Virginia Procedures Act, which "specifically requires that the circuit court only consider the record made before the agency and does not allow for the review or evaluation of any new evidence that is not contained in the record below," according to the report.

Steel of West Virginia has also asked the judge to grant a stay, halting the pending merger between the two healthcare organizations until the court issues a decision in the Freedom of Information Act lawsuit against West Virginia Attorney General Patrick Morrisey, according to the report.

The healthcare authority granted Cabell Huntington's certificate of need request in January 2016, nearly two yeas after the organizations declared their intent to merge, according to the report.

The proposed merger is pending regulatory approval. The transaction will also require approval from the Vatican, as St. Mary's Medical Center is a Catholic institution, according to the report.

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