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UofL works with state to purchase Jewish Hospital system

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With loan from state, will acquire metro properties, including Jewish Hospital Shelbyville

By The Staff

The University of Louisville today announced that it has reached a deal to secure Jewish Hospital and other KentuckyOne Health properties in the metro area, including Jewish Hospital Shelbyville.

Under the new deal, UofL’s University Medical Center, Inc. will acquire Jewish Hospital, including the Outpatient Care Center, Rudd Heart and Lung Center, offices and parking garages in Louisville and other metro area properties, including:

  • 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 the Louisville area.
  • KentuckyOne Health Medical Group provider practice, based in Louisville.

Annessa Baker, site executive and chief nursing officer at Jewish Hospital Shelbyville, said our local hospital is excited for what the future could hold with UofL.

“This is welcome news for our community and the hospital,” Baker said. “We look forward to working with UofL Health on a seamless transition that ensures continuity of care for the community and support for employees and physicians.”

To help secure the purchase, the state and Economic Development Cabinet Interim Secretary Vivek Sarin, of Shelbyville, supported 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 the currently underserved areas of the commonwealth.

“Our plan provides a sound answer, setting Kentucky and Louisville on a path to reap tremendous benefits for decades to come,” Sarin said.

UofL President Dr. Neeli Bendapudi underscored the critical role Jewish Hospital and the KentuckyOne Health network play in the greater Louisville region, noting that 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 said. “We are proud to protect that legacy and to ensure the continuation of that care as we acquire and enhance these facilities.”

The plan’s financing requires approval from the Kentucky General Assembly and the Kentucky Economic Development Finance Authority.

Kentucky Senate President Robert Stivers and Speaker of the House David Osborne also expressed support for the loan. A bill will be pre-filed for consideration in the 2020 legislative session to appropriate specific funding to the Cabinet for Economic Development in order to provide the loan to UofL.

With the General Assembly’s approval of the loan, the Kentucky Economic Development Finance Authority will be asked to consider approving the loan. The Cabinet for Economic Development is responsible for structuring and administering the loan.

Two local foundations, the Jewish Heritage Fund for Excellence and the Jewish Hospital and St. Mary’s Foundation, also committed to investing in the future of the facilities, pledging $10 million and $40 million, respectively, to be paid over four years.

With financing arranged, the sale is expected to close Nov. 1, pending regulatory approvals and the consent of the Catholic Church, which must approve the sale of Sts. Mary and Elizabeth Hospital and Our Lady of Peace Hospital. As part of the agreement, all facilities would be branded under the UofL Health umbrella.