Ken­tucky gov­er­nor re­jects pro­posed hos­pi­tal merger

Modern Healthcare - - LATE NEWS -

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.

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