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U of Louisville doesn't need $50M from state in Jewish Hospital deal, CEO admits in secret taping

University of Louisville (Ky.) may not need a $50 million loan from the state to buy Jewish Hospital and its affiliated entities, despite previous assertions that the deal would be impossible without financial assistance, according to local news station WDRB.

Earlier this year, U of L withdrew from negotiations with KentuckyOne Health to buy its Louisville assets, citing the lack of a financial partner. Jewish Hospital and St. Mary's Healthcare posted $29 million in losses in the last six months of 2018, while Jewish Hospital was estimated to need $300 million to $500 million in upgrades. U of L was drawn back to the negotiating table when the state offered a 20-year, $50 million loan to support the transaction. The board approved the takeover Aug. 14.

WDRB now reports that U of L is prepared for the takeover even without state funding. According to WDRB, U of L Health CEO Tom Miller was secretly taped saying, "Whether [the funding] happens or not, we have a plan associated with that on how to be successful. … It's great to have that as a backup; it's just a great resource to have."

A U of L spokesperson told WDRB these remarks do not negate previous statements.

"We are exploring several scenarios that would position us for success as we integrate the KentuckyOne Health assets into our system. The $50 million loan from the state … is critical and gives us the best opportunity to make Jewish Hospital and the other assets sustainable," the spokesperson told WDRB.

Read the full story here.  

 

More articles on transactions and valuation:

Top bid for Kentucky hospital falls through
Emory expands clinical network beyond Atlanta counties
Legislators question U of Louisville CEO about health system takeover

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