University sought partner to acquire Jewish Hospital assets

The University of Louisville said it was seeking a partner able to provide the capital and operational experience needed for a potential acquisition of Jewish Hospital and other medical facilities that KentuckyOne Health had been trying to sell.

The university issued a request for proposals as a formal step toward identifying such a partner. At that point, the scope of a purchase, its price and the structure of cooperation among the parties had not been settled.

An earlier nonbinding letter of intent outlined interest in acquiring Louisville-area assets from KentuckyOne’s parent organization. The subsequent proposal described a possible joint venture involving the university, its medical center and physician group.

The facilities were important to university medical programs, including cardiology, transplantation and neurosurgery. Jewish Hospital also served patients insured through public programs as well as uninsured and underinsured residents, making its future a significant community concern.

At the time, the hospital was under financial pressure. Prolonged negotiations between KentuckyOne and another prospective buyer had created uncertainty about the facility’s future. A related report said state officials had not provided the requested assistance; the university had declined to address that account. That background is available in the earlier coverage.

University representatives characterized the proposal as an effort to explore available options for the health sciences campus and the community’s healthcare needs. They also emphasized that no partner had been selected when the search was announced.

The proposed partner was expected to help determine whether a workable transaction could preserve important medical services while establishing a sustainable operating structure. The request set a response deadline several weeks after its release.

Healthcare observers said the loss of a major hospital would affect patients, medical education and the regional workforce. Financial filings from the period indicated operating losses and liabilities that substantially exceeded the assets attributed to two of the facilities.

KentuckyOne said confidential negotiations with interested parties were continuing. Earlier reporting had examined the uncertainty around another prospective transaction and preparations for alternatives if an agreement could not be reached. See that background report.

Archive note: This article summarizes a historical stage in the hospital transaction process. Deadlines and organizational circumstances described here belong to that period and should not be read as current guidance.