Jewish Hospital & St. Mary's HealthCare in Louisville, Ky., spent $6.9 million on legal, consulting and advertising in its merger with St. Joseph Health System in Lexington, Ky., to create KentuckyOne Health, according to a Courier-Journal report.
The KentuckyOne Health costs, along with a drop in the value of Jewish & St. Mary's investments, contributed to a $6.6 million loss for the hospital its final year before the merger. Not counting its merger expenses and investment loss, Jewish Hospital & St. Mary's HealthCare recorded a profit on patient care and other activities, reversing its 2010 loss. Despite a drop in hospital admissions, the company's operations netted $4.1 million due to trimming expenses, according to the report.
The bulk of the overall KentuckyOne Health merger spending — minus Jewish Hospital's contribution — remains private. St. Joseph and its parent company, Catholic Health Initiatives, are private entities and not required to release financial information.
However, Catholic Health's contributions to KentuckyOne Health are not private. Since the new system's creation, Catholic Health, which is the majority owner, has spent $320 million and plans to spend $150 million more by mid-2013, according to the report.
KentuckyOne Wants "Close Working Relationship" With University Hospital
The KentuckyOne Health costs, along with a drop in the value of Jewish & St. Mary's investments, contributed to a $6.6 million loss for the hospital its final year before the merger. Not counting its merger expenses and investment loss, Jewish Hospital & St. Mary's HealthCare recorded a profit on patient care and other activities, reversing its 2010 loss. Despite a drop in hospital admissions, the company's operations netted $4.1 million due to trimming expenses, according to the report.
The bulk of the overall KentuckyOne Health merger spending — minus Jewish Hospital's contribution — remains private. St. Joseph and its parent company, Catholic Health Initiatives, are private entities and not required to release financial information.
However, Catholic Health's contributions to KentuckyOne Health are not private. Since the new system's creation, Catholic Health, which is the majority owner, has spent $320 million and plans to spend $150 million more by mid-2013, according to the report.
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KentuckyOne Health Reduces Legal Staff After MergerKentuckyOne Wants "Close Working Relationship" With University Hospital