The University of Louisville (Ky.), which previously said it needs a $50 million loan from the state to help it finance a turnaround plan for Jewish Hospital, has lowered its request by $15 million, according to the Courier Journal.
The university's president, Neeli Bendapudi, said in a campuswide email this week that its early cost-saving efforts have been more successful than expected, and as a result, it is lowering its loan request to $35 million.
"I am happy to report that we have been more successful than we had anticipated we would be at both cost savings and increasing revenues," Ms. Bendapudi wrote. "For example, we are anticipating a procurement savings of more than $7 million annually, and we will make operational reductions of nearly $10 million after year one."
The university purchased Louisville-based KentuckyOne Health, which includes Louisville-based Jewish Hospital, from Chicago-based CommonSpirit Health Nov. 1. The transaction was considered risky because many of the facilities, including Jewish Hospital, need significant upgrades and operational improvements.
Together, the KentuckyOne Health properties were losing about $50 million a year, and CommonSpirit had been trying to sell them for more than two years, according to local news station WDRB. CommonSpirit acknowledged that the closure of Jewish Hospital was a possibility before University of Louisville stepped in.
To help it finance a turnaround plan for the struggling health system, the University of Louisville sought a $50 million state loan. In August it received a commitment from the state for the loan, which will be forgiven if the university meets certain employment criteria.
Read the full report here.
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