After two years of negotiations, KentuckyOne, a subsidiary of CommonSpirit Health, is selling the finiancially ailing Jewish Hospital (462 beds) and its Louisville-area assets, which include three hospitals and four outpatient centers. The negotiations dragged on so long, Jewish Hospital was in danger of closing.
The acquirers are the University of Louisville (UofL) and its University Medical Center (333 beds). UofL is recieving financial assistance in the deal with a state-funded $50 million, 20-year low-interest loan, half of which is forgivable if UofL meets certain employment criteria or extends services to currently underserved areas of the commonwealth.
The terms of the deal are convoluted, to say the least. UofL will pay $10 million for the assets. KentuckyOne will forgive UofL for the $19.7 million it owes for software and will transfer $76.4 million in working capital to UofL and provide $40 million over four years.
The assets include Jewish Hospital, including the Outpatient Care Center, Rudd Heart and Lung Center, offices and parking garages in Louisville; Frazier Rehab Institute; Sts. Mary and Elizabeth Hospital (246 beds) in Louisville; Our Lady of Peace pyschiatric hospital in Louisville; Jewish Hospital Shelbyville (30 beds); Medical Centers Jewish East, Northeast, South and Southwest, all in the Louisville region; and KentuckyOne Health Medical Group, based in Louisville.