LOUISVILLE, Ky. (KT) - The University of Louisville, with the help of state government, is buying the Jewish Hospital system, as well as other properties.
According to the deal announced Wednesday by Gov. Matt Bevin and U of L President Dr. Neeli Bendapudi, this will secure the future of the Jewish Hospital and other KentuckyOne Health properties and their employees.
Under the deal, University Medical Center Inc., owned by U of L, would acquire Jewish Hospital and other KentuckyOne Health assets located in the metro Louisville region and integrate them into the U of L system, maintaining Kentucky’s reputation in the healthcare innovation field and continue the training and research that supports the U of L medical school.
“U of L’s acquisition of the KentuckyOne Health facilities will maintain more than 5,000 jobs in the healthcare sector and ensure that our healthcare delivery system in Metro Louisville is preserved,” said Bevin. “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.”
Bendapudi says healthcare, education and biomedical research will be stronger with the preservation of these critical programs and services.
“These medical facilities and the thousands of professionals who work there have for decades provided outstanding and important medical care to patients throughout our community and beyond,” she stated. “We are proud to protect that legacy and to ensure the continuation of that care as we acquire and enhance these facilities.”
Facilities that are part of sale are:
--Jewish Hospital, including the Outpatient Care Center, Rudd Heart and Lung Center, offices and parking garages in Louisville
--Frazier Rehab Institute
--Sts. Mary and Elizabeth Hospital in Louisville
--Our Lady of Peace Hospital in Louisville
--Jewish Hospital Shelbyville
--Medical Centers Jewish East, Northeast, South and Southwest, all in Louisville region
--KentuckyOne Health Medical Group provider practice, based in Louisville
The U of L Board of Trustees approved the deal Wednesday morning, and CommonSpirit Health, which owns Jewish Hospital and related facilities, approved the plan earlier this week.
“Following many months of discussions with interested organizations, we believe that UofL Health will carry the legacy and excellence of
KentuckyOne Health Louisville operations into the future,” said Kevin Lofton, CEO of CommonSpirit Health. “This commitment of providing access to quality care and innovation has been the focus of these hospitals for generations, as founded by the Sisters of Charity of Nazareth and Jewish community leaders.”
To secure the purchase, Gov. Bevin and Economic Development Cabinet Interim Secretary Vivek Sarin support a state-funded $50 million, 20-year, low-interest loan to University Medical Center, Inc. Half of the loan is forgivable if UofL meets certain employment criteria or extends services to currently underserved areas of the commonwealth.
The plan’s financing requires approval from the Kentucky General Assembly and the Kentucky Economic Development Finance Authority.
Kentucky Senate President Robert Stivers, R-Manchester, and House Speaker David Osborne, R-Prospect, have expressed support for the loan, and Osborne will file legislation for the 2020 General Assembly, to OK the loan.
According to KentuckyOne Health, closure of the transaction is expected to occur on Oct. 31, and U of L Health is expected to assume ownership and operation the following day.