Planned sale of Jewish Hospital, other Louisville facilities delayed until 2018
KentuckyOne Health is taking longer than expected to sell a money-losing group of Louisville facilities including Jewish Hospital and the Frazier Rehabilitation Institute, according to the nonprofit healthcare provider’s parent company.
LOUISVILLE, Ky. (WDRB) -- KentuckyOne Health is taking longer than expected to sell a money-losing group of Louisville facilities including Jewish Hospital and the Frazier Rehabilitation Institute, according to the nonprofit healthcare provider’s parent company.
In its most recent financial report, dated Tuesday, Denver-based Catholic Health Initiatives said the “marketing and sale process” of the Louisville facilities will continue through June 30, 2018, the end of the organization’s fiscal year.
CHI spokesman Michael Romano confirmed that the organization “anticipates closing on a sale” of the Jewish Hospital & St. Mary’s Healthcare properties by June 30. He did not give a reason for the delayed timeline.
KentuckyOne first announced it would sell most of its Louisville assets in May, saying it planned to scale back its footprint and focus on central and eastern Kentucky.
Besides Jewish Hospital and adjacent Frazier Rehab Institute, KentuckyOne is looking to offload Sts. Mary & Elizabeth Hospital in south Louisville and Jewish Hospital Shelbyville.
Also on the sale block are KentuckyOne’s Louisville outpatient centers -- Jewish Medical Centers East, South, Southwest and Northeast – as well as the KentuckyOne Health Medical Group provider practice in Louisville.
Finally, KentuckyOne plans to sell Saint Joseph Martin, a 25-bed critical access facility in eastern Kentucky, and its provider practice in Martin, Ky.
The Jewish Hospital & St. Mary’s Healthcare assets collectively posted operating losses of $20 million on $182 million in revenue during the three months ended Sept. 30, according to CHI’s report dated Tuesday.
The report shows that the losses for those facilities widened in the most recent period from a year earlier, when the facilities lost $17 million on $189 million in revenue.
KentuckyOne and the University of Louisville ended their short-lived partnership earlier this year when the university resumed operating U of L Hospital and the James Graham Brown Cancer Center.
CHI then paid $150 million to the predecessor organization of the Jewish system, the Jewish Heritage Fund for Excellence, for its 17 percent interest in KentuckyOne Health, giving CHI complete ownership of KentuckyOne.