The deal’s closure marks the end of two years of uncertainty about the future of KentuckyOne’s hospitals and other assets. The transaction was seen as risky because the facilities need significant upgrades.
Under the deal, University of Louisville is securing a $50 million state loan, which will be forgiven if the university meets certain criteria regarding employment or service to underserved areas. The Jewish Heritage Fund for Excellence and the Jewish Hospital and St. Mary’s Foundation are also investing in the deal, contributing a combined $50 million.
University of Louisville President Neeli Bendapudi, PhD, said the deal creates many new opportunities for the university and the local community.
“This acquisition enables us to ensure access to quality health care for our entire community, and it strengthens our School of Medicine and our Health Sciences Center campus by allowing us to offer more training opportunities for our students and more research capacity for our faculty,” she said in a press release. “It also saves thousands of jobs that could have been lost if any of these facilities closed.”
Roughly 5,500 former KentuckyOne employees joined University of Louisville Health after the deal closed.
More articles on healthcare industry transactions:
CHS to sell 3 hospitals, exit Virginia
Mercy Hospital in Minnesota to join Essentia Health
LifePoint inks $700M deal with Medical Properties Trust
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