WHEELING, W.Va. (AP) — Federal health officials are opposing the planned sale of Fairmont General Hospital to Alecto Healthcare Services.
U.S. Attorney William Ihlenfeld filed the objection Monday on behalf of the U.S. Department of Health and Human Services in U.S. Bankruptcy Court in Wheeling.
The filing says 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 filing says the transfer of a Medicare provider agreement is strictly regulated.
The objection was first reported by The Dominion Post (http://bit.ly/Ta45Cr ).
Alecto has bid about $15 million for Fairmont General. A hearing on the sale is set for June 23.
Fairmont General filed for Chapter 11 bankruptcy protection last September.
Information from: The Dominion Post, http://www.dominionpost.com