LOUISVILLE, Ky. - Jewish Hospital and other medical facilities have struggled and to prevent the closure of one or all of them, the University of Louisville reached an agreement to buy KentuckyOne Health's Louisville-area assets.
The purchase includes:
- Jewish Hospital, including the Outpatient Center, Rudd Heart and Lung Center, offices and parking garages
- Frazier Rehab Institute
- Sts. Mary & Elizabeth Hospital
- Our Lady of Peace Hospital
- Jewish Hospital Shelbyville
- Jewish Medical Centers East, Northeast, South and Southwest
- Physician groups affiliated with Kentucky One
UofL will pay $10 million to obtain the assets from KentuckyOne's parent company, CommonSpirit Health. As part of the agreement, CommonSpirit will forgive $19.7 million in outstanding promissory notes from University Medical Center Inc. The university will receive more than $76 million of working capital in the form of accounts receivable and cash to meet operating expenses.
“These medical facilities and the thousands of professionals who work there have for decades provided high-quality medical care to patients throughout our community and beyond,” said UofL President Neeli Bendapudi. “We are proud to protect that legacy and to ensure the continuation of that care as we acquire and enhance these facilities.”
Governor Matt Bevin and Economic Development Cabinet Secretary Vivek Sarin, pledged support for a $50 million, 20-year loan, have of which will be forgiven if the University of Louisville meets certain criteria in areas of employment or service to underserved areas of the community and the state.
“UofL’s acquisition of the KentuckyOne facilities will maintain more than 5,000 jobs in the healthcare sector and ensure that our healthcare delivery system in Metro Louisville is preserved,” Bevin added. “I am confident that this acquisition will further the incredible medical research occurring at these facilities, while simultaneously meeting the growing demand for quality, cutting-edge healthcare services.”
Also, two local foundations, the Jewish Heritage Fund for Excellence and the Jewish Hospital and St. Mary's Healthcare Foundation, are providing outside investments in the future of the facility, contributing $10 million and $40 million respectively, to be paid over the next four years.
Bendapudi acknowledged this is a financial risk, but stresses there is an upside to acquiring the facilities. She says it will provide more opportunities for residents and students at the university's Health Sciences Center. The resources and facilities will conduct research and hopefully bring more clinical trials, funding, and faculty to the university.
The UofL Board of Trustees approved the sale at it's August 14 meeting. The sale is expected to close November 1, pending regulatory approvals and consent of the Catholic Church, which must approve the sale of Sts. Mary & Elizabeth and Our Lady of Peace. The facilities will be branded under the UofL Health umbrella and the university will assume management of the facilities upon closing.