The University of Louisville has notified Catholic Health Initiatives and its affiliate, KentuckyOne Health, that it is ending negotiations to purchase KOH’s Louisville assets, which include Jewish Hospital where the university has several service lines and its physicians treat patients and teach medical residents.
Talks were halted because UofL could not find a suitable partner to help fund the acquisition. UofL officials were not willing to put the university at financial risk by taking on the acquisition alone.
“We regret ending our talks with CHI, but we must do what is fiscally responsible for the University of Louisville,” said UofL President Neeli Bendapudi. “Without a viable partner, we do not have the resources necessary to make the acquisition a reality.”
“KentuckyOne Health is disappointed that the university was not able to secure a financial partner,” said Deborah Lee-Eddie, interim market CEO for KentuckyOne Health. “We will now continue our discussions with other interested organizations.”
UofL and CHI have agreed to several steps as the two parties work on the changes in their relationship.
CHI will extend the Academic Affiliation Agreement to ensure that undergraduate and graduate/resident medical education programs continue at Jewish Hospital and Frazier Rehab Institute. If programs cannot be continued at those facilities, CHI will assign those residencies to another facility requested by the university.
The AAA is an agreement that provides conditions under which the university’s physicians and medical residents provide care for patients, serve in leadership roles for various hospital programs and services and conduct clinical trials that offer innovative treatments unavailable anywhere else in the region.
CHI also has agreed to continue the current professional services, medical directorships and similar provisions included in the Master Services Agreement while it and UofL discuss transition planning. CHI will provide at least 90 days notice before terminating any of those individual agreements.
“Our patients will continue to receive the highest quality care, and our students and residents will continue to receive the education and training they must have to become future providers,” Bendapudi said. “That is our unwavering commitment.”
KentuckyOne’s local properties also include Our Lady of Peace, Sts. Mary & Elizabeth Hospital, Jewish Hospital Medical Centers East, South, Southwest and Northeast, Jewish Hospital Shelbyville and the KentuckyOne Health Medical Group.
UofL and CHI have negotiated in good faith on the purchase of the portfolio only since December 2018.
Services provided by UofL physicians at Jewish Hospital include organ transplantation, cardiovascular medicine and neurological surgery. The hospital is home to the only solid organ transplant facility in the region, and UofL’s renowned clinical care and research in cardiovascular medicine and spinal cord injury are conducted at Jewish and Frazier Rehab.
Bendapudi applauded all those who tried to make a deal for the KentuckyOne assets a reality.
“Everyone involved in these talks put dedication and hard work into them, and I thank them all,” she said. “This endeavor did not fail for lack of effort on the part of either party.”