Kentucky governor rejects proposed hospital merger
Kentucky Gov. Steve Beshear rejected the merger that would have united the University of Louisville’s hospital with two Kentucky affiliates of Englewood, Colo.based Catholic Health Initiatives. “After exhaustive discussions and research, I have determined that this proposed disappointed and that the merger was crucial for the facility’s future. “We look forward to delivering a transaction in a form that the governor would feel compelled to approve,” the spokesman said in a statement. In a report sent to Beshear late last week, Kentucky Attorney General Jack Conway said the merger would leave the University of Louisville with only an “indirect and minority influence” over the hospital and also expressed concern that the university could be compelled to buy assets to retake control of the hospital in the event of unwinding. Under the proposed deal, CHI would invest at least $200 million into University Hospital and commit another $11 million a year to the facility, as well as $6 million annually in lease payments to the university. Part B payment they would have received for claims a Medicare contractor denied for care billed as short inpatient stays.