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