KentuckyOne, private equity firm close to deal on Jewish Hospita - WDRB 41 Louisville News

KentuckyOne, private equity firm close to deal on Jewish Hospital, other Louisville assets, U of L leader says

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KentuckyOne Health owns Jewish Hospital in downtown Louisville, shown here in October 2016. KentuckyOne Health owns Jewish Hospital in downtown Louisville, shown here in October 2016.

LOUISVILLE, Ky. (WDRB) --  New York private equity firm BlueMountain Capital Management will decide “within a month or less” whether to purchase KentuckyOne Health’s Louisville assets, including Jewish Hospital and the Fraizer Rehabilitation Institute, interim University of Louisville Greg Postel said Thursday.

BlueMountain Capital has been negotiating exclusively with KentuckyOne and its parent company, Denver-based nonprofit Catholic Health Initiatives, since December, but no deal has been announced.

A spokesman for BlueMountain Capital declined to comment on Thursday.

"Discussions with BlueMountain Capital Management continue to progress in a positive manner," KentuckyOne Health spokesman David McArthur said. "Our goal remains to reach an agreement by this summer."

It’s been nearly a year since KentuckyOne first said it would sell most of its Louisville assets to allow the organization to scale down and focus on 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.

U of L has been kept in the loop on the deal because the university’s doctors and medical programs are a big source of admissions and revenue at Jewish Hospital and Frazier Rehab.

The vast majority of adult organ transplants in Louisville are performed at Jewish Hospital by U of L physicians, for example.

“The conversation continues and is all positive,” Postel said Thursday.

Reach reporter Chris Otts at 502-585-0822, cotts@wdrb.com, on Twitter or on Facebook. Copyright 2018 WDRB News. All rights reserved.

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