Recently-released documents detailing the proposed merger between three Kentucky health systems reveal Catholic Health Initiatives would have control over the system's budget while University of Louisville would control its research and academics, according to a report from The Courier-Journal.
The documents were just turned over to County Attorney Mike O'Connell this week. They detail the proposed structure, governance and controls within a pending system formed by University Hospital in Louisville, Jewish Hospital HealthCare Services in Louisville and Lexington, Ky.-based St. Joseph Health System, which is operated by Catholic Health Initiatives. CHI would be the majority owner in the new system.
Other key details in the documents include:
• CHI would have the exclusive right to approve a CEO for the new organization.
• CHI could transfer money from the new organization if it's necessary to meet CHI's long-term debt obligations.
• CHI would receive regular payments from the new organization for legal and information services. A specific amount was not disclosed.
• The three hospital systems comprising the new organization could approve payments from the merged organization to themselves to advance their "charitable missions," according to the report.
• The new organization would invest $100 million over three years in St. Joseph facilities.
• The new organization would invest $200 million over three years for improvements in University Hospital facilities and Jewish Hospital facilities. It would also pay Jewish $1 million per year and University of Louisville, the operator of University Hospital, $11 million per year.
University Hospital Releases Merger Records to Kentucky County Attorney
University Hospital May Reduce Charity Care if Kentucky Merger Fails
The documents were just turned over to County Attorney Mike O'Connell this week. They detail the proposed structure, governance and controls within a pending system formed by University Hospital in Louisville, Jewish Hospital HealthCare Services in Louisville and Lexington, Ky.-based St. Joseph Health System, which is operated by Catholic Health Initiatives. CHI would be the majority owner in the new system.
Other key details in the documents include:
• CHI would have the exclusive right to approve a CEO for the new organization.
• CHI could transfer money from the new organization if it's necessary to meet CHI's long-term debt obligations.
• CHI would receive regular payments from the new organization for legal and information services. A specific amount was not disclosed.
• The three hospital systems comprising the new organization could approve payments from the merged organization to themselves to advance their "charitable missions," according to the report.
• The new organization would invest $100 million over three years in St. Joseph facilities.
• The new organization would invest $200 million over three years for improvements in University Hospital facilities and Jewish Hospital facilities. It would also pay Jewish $1 million per year and University of Louisville, the operator of University Hospital, $11 million per year.
Related Articles on the Kentucky Hospital Merger:
City of Louisville Withholds Charity Care Payment to University HospitalUniversity Hospital Releases Merger Records to Kentucky County Attorney
University Hospital May Reduce Charity Care if Kentucky Merger Fails