Nonprofit organization gets $150 million as KentuckyOne owner withdraws from Louisville
LOUISVILLE, Ky. (WDRB) -- The Louisville nonprofit organization that once owned Jewish Hospital will get a $150 million payment from Denver-based Catholic Health Initiatives as the healthcare provider scales back its presence locally.
CHI will buy out the Jewish Heritage Fund for Excellence’s 17 percent stake in KentuckyOne Health, giving CHI sole control of the statewide healthcare network.
KentuckyOne said in May that it plans to sell almost all of its Louisville facilities -- including Jewish Hospital, the Frazier Rehab Institute, Sts. Mary & Elizabeth Hospital and Jewish Hospital Shelbyville – as part of a plan to trim down and focus on Central and Eastern Kentucky amid financial struggles.
The change in strategy by CHI, as the majority owner of KentuckyOne, prompted the split with the Jewish Heritage Fund for Excellence.
“(B)oth organizations agreed it would be best to conclude our relationship and pursue our missions independently,” David Kaplan, chairman of Jewish Heritage Fund for Excellence’s board of trustees, said in a press release.
CHI and Jewish Hospital HealthCare Services, the predecessor organization to the Jewish Heritage Fund for Excellence, formed KentuckyOne in 2012 by merging the operations of the Jewish Hospital system in Louisville with the St. Joseph Health System in Lexington.
Jewish Hospital HealthCare Services retained about $70 million from the legacy organization, changed its name and became a grant-making group supporting medical research, education and Louisville’s Jewish community.
The Jewish Heritage Fund for Excellence will have about $250 million in assets following the infusion from CHI, according to a press release.
“We are very excited about our enhanced capacity to promote medical research, community health and support the Jewish community,” Kaplan said in the release.
The organization traces its roots to the founding of Jewish Hospital in 1903.
CHI has said it hopes to sell the money-losing Louisville facilities by the end of the year, but no buyer has been publicly identified.