Four sources familiar with ongoing negotiations between Louisville-based KentuckyOne Health and a private equity firm said the deal has soured, according to Insider Louisville.
Here are five things to know:
1. KentuckyOne revealed plans to sell Louisville-based Jewish Hospital in May 2017, citing "significant challenges" in the healthcare industry. In December 2017, the health system revealed it had entered into exclusive negotiations with BlueMountain Capital Management, a private equity firm in New York City.
2. While KentuckyOne Health interim president and CEO Charles Neumann previously said the organizations aimed to close negotiations regarding the sale "around the end of the summer," several sources told Insider Louisville the deal is essentially dead and affected individuals are preparing for Jewish Hospital's impending closure.
"Everybody at this point is pretty much preparing for the worst," one source familiar with the issue told the publication.
3. The closure of Jewish Hospital would deeply affect the Louisville community, the report states, though its full impact would depend on how quickly the 462-bed facility is closed. One source, however, said the hospital's closure — and the probable consolidation of services — would benefit the community. The issue, the source told the publication, is that consolidation would be forced on the community, rather than guided with a vision for improving patient care, which would present a cause for concern.
4. A KentuckyOne Health spokesperson told Becker's Hospital Review in a Sept. 21 statement that negotiations are ongoing:
"Exclusive negotiations with BlueMountain Capital Management have continued since the signing of the letter of intent in December 2017. Leadership from both organizations have continued to meet weekly, and more frequently as needed. We are continuing to make progress and are working toward reaching an agreement."
5. In a Sept. 24 statement published to KentuckyOne's website, Mr. Neumann reiterated the health system "is not planning for the closure of Jewish Hospital" and that the two organizations "remain in active and positive discussions."
To access the full report, click here.
Editor's note: This article was updated at 4:17 p.m Sept. 24 to include additional information from KentuckyOne Health.