KentuckyOne Health could sell Jewish Hospital, other Louisville facilities to New York private equity firm
KentuckyOne Health said Tuesday it is in talks to possibly sell Jewish Hospital, Frazier Rehabilitation Institute and other properties to a New York-based investment firm.
LOUISVILLE, Ky. (WDRB) -- KentuckyOne Health on Tuesday identified BlueMountain Capital Management, a New York-based private equity firm, as the potential buyer of its Louisville facilities, including Jewish Hospital and the Frazier Rehabilitation Institute.
KentuckyOne and its parent company, the nonprofit Catholic Health Initiatives, have just started "exclusive negotiations" with BlueMountain Capital about an investment or sale, according to a news release. No other details of a potential deal were disclosed.
KentuckyOne first announced it would sell most of its Louisville assets in May, saying it planned to trim its focus to central and eastern Kentucky.
Besides Jewish Hospital and the Frazier Rehab Institute, KentuckyOne is also looking to offload Sts. Mary & Elizabeth Hospital in south Louisville; Jewish Hospital Shelbyville; the Louisville outpatient centers known as Jewish Medical Centers East, South, Southwest and Northeast; and the KentuckyOne Health Medical Group provider practice in Louisville.
BlueMountain Capital declined to comment, according to a public relations representative.
The firm, which manages $22 billion in assets, has made other healthcare investments, including buying some of Louisville-based Kindred Healthcare's nursing homes, and taking control of Verity Health, a struggling hospital system in California, last year.
KentuckyOne and the University of Louisville ended a short-lived partnership earlier this year when the university resumed operating U of L Hospital and the James Graham Brown Cancer Center.
Catholic Health Initiatives 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.
Many University of Louisville researchers and medical students have programs at Jewish Hospital, so the future of the facility is important to the university, U of L interim President Greg Postel has said.
In a statement issued Tuesday, Postel said he welcomes the news of BlueMountain Capital's potential ownership.
"We believe that it is important that the people of Louisville and the region have access to high quality health care close to their homes, whether that be downtown or in the suburbs," Postel said. "We look forward to working with the leaders of BlueMountain Capital Management related to the educational and health care programs of the University of Louisville that are based at local KentuckyOne facilities."
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