KentuckyOne, NY firm hope to reach Jewish Hospital deal 'later this summer'
LOUISVILLE, Ky. (WDRB) – Six months after a New York private equity firm was identified as the potential buyer of KentuckyOne Health’s Louisville assets, including Jewish Hospital, the two parties have yet to reach deal, but say they hope to “later this summer.”
KentuckyOne Health, which owns Jewish and other area hospitals, continues to negotiate exclusively with New York-based BlueMountain Capital Management, both sides confirmed Monday.
Colorado-based Catholic Health Initiatives, which owns KentuckyOne Health, said in its latest quarterly report on May 10 that it planned to close the deal by June 30.
KentuckyOne Health first disclosed its plan to sell the properties, part of a retreat from Louisville to focus on central and eastern Kentucky, in May 2017. At that time, CHI projected the deal would happen by the end of 2017.
Spokesmen for KentuckyOne and BlueMountain Capital wouldn’t comment Monday on why the negotiations are taking longer than anticipated.
“(O)ur goal remains to reach a definitive agreement later this summer,” KentuckyOne Health said in an emailed statement.
A spokesman for BlueMountain Capital said nothing has changed in recent months as the two sides remain in non-binding negotiations.
KentuckyOne first identified BlueMountain Capital as the potential buyer in December 2017.
Besides Jewish Hospital, KentuckyOne wants to sell the adjacent Frazier Rehab Institute; 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.
Jewish Hospital performs nearly all of the adult organ transplants in the Louisville area.
The hospital and Frazier Rehab Institute are important to the University of Louisville, whose doctors and medical residents account for about half of the business at the facilities.
KentuckyOne is losing money on the Louisville operations, according to CHI’s public financial reports.
In the nine months ended March 31, KentuckyOne Health lost $41 million, before other charges, on $554 million in revenue at the properties it wants to sell, according to CHI’s latest report.
The losses have widened from $28 million during the same period a year earlier, while revenue was down 5.6 percent at the properties, according to the disclosure.