University of Louisville (Ky.) is once again defending its decision to buy the financially struggling Jewish Hospital and other KentuckyOne Health assets and its need for a $50 million loan from the state, according to the Courier Journal.
The university purchased Louisville-based KentuckyOne Health from Chicago-based CommonSpirit Health Nov. 1. The transaction was considered risky because many of the facilities, including Louisville-based Jewish Hospital, need significant upgrades.
Per the deal, University of Louisville is expected to secure a $50 million loan from the state of Kentucky, which will be forgiven if the university meets certain employment criteria.
However, lawmakers remain unsure about approving a $50 million state loan to support the takeover.
Sen. Tom Buford, R-Nicholasville, is one of the lawmakers that remains uncertain. He said the money for the loan would be pulled from the state government's general fund, which also supports public school teachers.
Sen. Stephen Meredith, R-Leitchfield, also expressed concerns about the loan. He said he is worried about approving a loan for a hospital in a major city while other rural hospitals in the state are struggling to remain afloat.
However, University of Louisville President Neeli Bendapudi, PhD, argued that the deal was "neither easy nor simple," and said if the acquisition didn't occur, "the closure of Jewish Hospital would have been catastrophic" due to job losses and the effect on the University of Louisville's medical program.
Dr. Bendapudi told lawmakers that the university, which receives funding for services its faculty and residents provided at Jewish Hospital, stood to lose about $51 million a year without the acquisition, which "would have decimated" the school.
Dr. Bendapudi argued that the loan is necessary to begin to turn around the struggling Jewish Hospital.
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