University of Louisville (Ky.) tried to partner with two other systems to help it buy Louisville-based Jewish Hospital and KentuckyOne Health's other assets, according to a new policy brief obtained by the Louisville Business First.
The brief includes details about the moves that led up to the university's takeover of Louisville-based KentuckyOne Health, finalized Nov. 1.
The university tried to partner with Norton Healthcare and Baptist Healthcare for help with financing the Jewish Hospital and KentuckyOne deal. Instead, the university worked out a deal with Kentucky to get a $50 million state loan, which will be forgiven if the university meets certain criteria regarding employment or service to underserved areas.
"U of L sought partnerships with both Norton Healthcare and Baptist Health systems, as well as external business partners, and comes to the state as a last resort," the brief states, according to Louisville Business First. "But for the health of the state, U of L would not be able to be successful, and the citizens of Kentucky would face dire consequences for their physical, social, and economic health and well-being."
KentuckyOne's parent, Nashville, Tenn.-based Catholic Health Initiatives, at one point said it would close the struggling Jewish Hospital and sell off the remaining assets to unspecified buyers.
The closure of Jewish Hospital would have negatively affected the university, because it houses several education, clinical and research programs at the hospital, according to the report.
More articles on healthcare industry transactions:
Prospect Medical Holdings can't consider $50M acquisition offer
Baylor Scott & White to transfer operations of Texas community hospital
1,250 healthcare deals have been announced, completed this year