IU Health sells three hos­pi­tals as it preps for $1 bil­lion project

Modern Healthcare - - REGIONAL NEWS - —Dave Barkholz

In­di­ana Univer­sity Health, a 14-hospi­tal sys­tem based in In­di­anapo­lis, pruned its hospi­tal port­fo­lio as it pre­pares for a $1 bil­lion con­struc­tion project at one of its down­town health cam­puses.

IU Health di­vested Goshen (Ind.) Health in De­cem­ber and an 80% in­ter­est in its hospi­tal in La­Porte and Starke Hospi­tal in Knox, Ind., last March.

Goshen paid IU Health $20 mil­lion to di­vorce. But IU Health took a $295 mil­lion non-op­er­at­ing im­pair­ment charge against the loss of those as­sets for 2016, the sys­tem re­ported last week in its au­dited 2016 fi­nan­cial fil­ing.

In the ear­lier deal, in­vestorowned Com­mu­nity Health Sys­tems paid $96.5 mil­lion for 80% of the La­Porte and Starke hos­pi­tals— money that went into a foun­da­tion rather than IU Health. IU Health took a non- op­er­at­ing charge of $156.8 mil­lion in 2016 re­lated to the trans­ac­tion.

In a state­ment, IU Health said the three di­vested hos­pi­tals are in north­ern In­di­ana, where they of­ten sent pa­tients need­ing qua­ter­nary care to hos­pi­tals in Chicago and Michi­gan.

IU Health also fo­cused its cap­i­tal and growth strat­egy fur­ther down­state rather than spend money to build clin­ics and am­bu­la­tory sites to of­fer lower- cost care set­tings for pa­tients, CEO Den­nis Mur­phy said.

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