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FAIRMONT GENERAL-BANKRUPTCY
Federal bankruptcy judge OKs sale of Fairmont General to Alecto despite government objection

Reported by: Associated Press
Monday, June 23, 2014 4:23 PM EDT
WHEELING, W.Va.


Fairmont General Hospital says its planned sale to Alecto Healthcare Services is moving forward after receiving approval from a federal bankruptcy judge.

The U.S. Bankruptcy Court in Wheeling on Monday signed off on the proposed sale despite objections from federal health officials.

Fairmont General's lawyer, Mike Garrison said Alecto bid $15.3 million for the hospital. He says the deal will close in the near future.

Federal health officials opposed the sale, saying it would violate federal law by preventing full repayment of money owed on Medicare contracts.

Fairmont General filed for Chapter 11 bankruptcy in September 2013.

The hospital said in court filings that it first began experiencing operating losses and cash flow concerns in 2008.










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