Louisville, Ky.-based Jewish Hospital, run by KentuckyOne Health in Louisville, saw its finances decline after its integration with the University of Louisville in 2013, according to Insider Louisville.
Five things to know:
1. The average annual profit of Jewish Hospital and its partner, Sts. Mary & Elizabeth Hospital, totaled $16 million from 2002 and 2011, including a $41 million gain in 2011, according to IRS records cited by Insider Louisville.
2. However, in the five years since the hospital entered a joint operating agreement with the University of Louisville and the ACA took effect, Jewish and St. Mary lost $135 million.
3. At the same time, the university's Louisville-based University Medical Center improved a net loss of nearly $1 million for 2011 and 2012 to a yearly average profit of $40 million, according to the report.
4. Peter Hasselbacher, MD, emeritus professor of medicine at the University of Louisville, told Insider Louisville, "The agreement didn't work out to anybody's satisfaction." The University of Louisville and KentuckyOne ended their joint operating agreement in summer 2017. Dr. Hasselbacher added that while IRS records indicate Jewish Hospital was profitable before the joint operating agreement, the hospital was nearing bankruptcy and carrying hundreds of millions in long-term debt.
5. KentuckyOne has been attempting to spin off Jewish Hospital and its Louisville assets since May 2017. In January of this year, the University of Louisville reportedly bid to acquire several hospitals and other assets from KentuckyOne Health. KentuckyOne and its parent company, Englewood, Colo.-based Catholic Health Initiatives, have previously said they have remained in exclusive sale negotiations with private equity firm BlueMountain Capital Management since December 2017. However, CHI executives have continued delaying the timeline for a potential agreement.
For the full Insider Louisville analysis, click here.
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