FRANKFORT, Ky. (WDRB) – The University of Louisville’s request for a special, $35 million appropriation from state government to ease its takeover of the money-losing KentuckyOne Health system took a step forward on Tuesday.
The House budget committee voted overwhelmingly to advance HB 99, which would provide the money to U of L with the potential for half of it to be repaid to state government over 20 years.
“This is truly so important to the health of the commonwealth in so many ways,” U of L President Neeli Bendapudi told WDRB following the committee vote, adding that she was anxious to get final approval for the money.
Former Gov. Matt Bevin and legislative leaders first committed to appropriate $50 million to U of L in August when the university announced that it would take over the KentuckyOne system, including financially struggling Jewish Hospital.
But there was no guarantee that lawmakers would ultimately approve the money. Despite that, U of L closed the deal and assumed the KentuckyOne system on Nov. 1. Bendapudi said KentuckyOne and its parent company, a unit of CommonSpirit Health, were unwilling to delay the deal.
U of L earlier this month lowered the request to $35 million.
Bendapudi said the university had been more successful than projected at reducing costs in the KentuckyOne system and getting more revenue through avenues like higher payment rates for doctors and enhanced Medicaid reimbursements from the federal government available to academic medical centers.
Though most applaud U of L’s move to keep Jewish Hospital open and its organ transplant program viable, some disagree with the $35 million loan on policy grounds.
Andrew McNeill, Kentucky director for the conservative group Americans for Prosperity, told the committee that U of L, a state university, should be able to get private financing for the deal at market interest rates rather than asking taxpayers to foot the bill.
He added that he fears the university will be back with more funding requests in the future. But Bendapudi told lawmakers U of L is “very confident” it can take care of the health system’s needs, including significant capital upgrades, without coming back for more state money.
