West Virginia Sought Private Operators for State Hospitals
The state invited private organizations to manage two psychiatric hospitals to improve operational efficiency.
Updated on Oct. 12, 2026 in Healthcare
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The West Virginia Department of Health Facilities issued a request for proposals to find private operators for Mildred Mitchell-Bateman Hospital and William R. Sharpe, Jr. Hospital. The state will retain ownership of both facilities as it seeks outside expertise to improve care and management.
Why it matters
The state initiated this search to address high operating costs and critical infrastructure needs at its psychiatric facilities. Officials aim to leverage specialized external expertise to stabilize finances and enhance patient care standards.
The search covers two psychiatric hospitals, including the 75-year-old Mildred Mitchell-Bateman facility in Huntington, which faces significant deferred maintenance. William R. Sharpe, Jr. Hospital in Weston currently reports annual operating expenses exceeding $128 million.
The players
West Virginia Department of Health Facilities
The state agency responsible for overseeing and managing public health infrastructure and inpatient facilities across West Virginia.
Mildred Mitchell-Bateman Hospital
A 75-year-old state-owned psychiatric hospital located in Huntington that requires significant deferred maintenance funding.
William R. Sharpe, Jr. Hospital
A state-owned psychiatric facility in Weston with annual operating costs exceeding $128 million.
The details
The state is seeking organizations with proven experience operating both civil and forensic inpatient psychiatric facilities. By outsourcing management, the state intends to curtail high expenditures, particularly the heavy reliance on contract and agency staffing at William R. Sharpe, Jr. Hospital. While private firms will take over operations, the state government will remain the legal owner of both hospital properties.
Timeline
Late 2026: Deadline for interested organizations to submit formal proposals.
Market Landscape
This development follows the established trend of states utilizing public-private partnership (P3) models to offload the management of complex, high-cost social infrastructure. It marks an attempt to import private-sector operational efficiencies into public healthcare systems that face chronic staffing and maintenance burdens.
Operators in the healthcare management sector should prepare for a competitive bidding process if they possess the specialized capacity to manage forensic and civil psychiatric care. Facilities managers and vendors should monitor state updates regarding the RFP terms to determine the threshold for potential contract profitability.
The takeaway
The state’s move highlights a shift toward externalizing the financial risk associated with specialized psychiatric care and aging public infrastructure. Interested organizations should track the upcoming RFP release to evaluate the specific risk-transfer terms and long-term staffing requirements.
Further reading
For broader trends in sector-wide facility management, visit Healthcare.
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Do you trust private operators to manage your community's state-run psychiatric facilities better than the state?
