LOUISVILLE, Ky. (WDRB) -- A new birthing center planned for south Louisville is on hold because of recent federal cuts to Medicaid. 

The $20 million "Birthing Place" project at UofL Health – Mary & Elizabeth Hospital called for 21,000 square feet of office space near the hospital entrance to be transformed into the first birthing center west of Interstate 65 in five decades. 

"This project would have benefited the South End as a whole," Councilwoman Crystal Bast (D-14) said. "Of course, it's disappointing. We want to see innovative, quality-of-life initiatives land in this area, that was the intent behind the original funding."

Plans for the unit included eight labor, delivery, recovery and postpartum suites that would have focused on natural and traditional childbirth. A specialty suite specifically designed for C-Sections was also part of the plans. 

UofL Health officials confirmed the project is on hold due to recent Medicaid cuts in the following statement: 

"The recent cuts to Medicaid have changed the landscape for health care services in Kentucky. While the most severe cuts do not go into effect until 2028, we must start planning for that future now.

UofL Health is indefinitely delaying the opening of The Birthing Place at UofL Health – Mary & Elizabeth Hospital. 44% of Kentucky births are financed by Medicaid. That funding was instrumental in developing our plans for The Birthing Place at UofL Health – Mary & Elizabeth Hospital. The expected loss of Medicaid funding jeopardizes the viability of bringing labor and delivery services to South Louisville.

UofL Health is still committed to providing robust health care services at Mary & Elizabeth Hospital. We are working with Mayor Craig Greenberg and Metro Council to continue providing health services in the South Jefferson County that have long term sustainability and in the best interest of the community. We will plan on opening a Women's Health Center in the expanded space and are confident the expanded women services at Mary & Elizabeth Hospital will fill an important gap in a medically underserved area.

Halting these plans is a disappointing, but necessary financial decision. We will continue to monitor the Medicaid landscape and look for opportunities to revisit the project."

The renovation of the space was supported by $8.25 million in grants from Louisville Metro Government. 

David McArthur, UofL Health's Director of Public Relations, addressed whether than funding will be returned to the city in a written statement:

"To date, we have received $3 million of the pledged amount. We are working with Mayor Craig Greenberg and Metro Council members to provide health care services to Southern Jefferson County residents that are sustainable and in the best interest of the community."

Bast said she's working with Greenberg's administration to explore alternative uses for the funding within the South End.

"My hope is that we can pivot and apply it toward other projects already on our radar that would deliver lasting benefits to the community," Bast said.

Mayor Craig Greenberg's Press Secretary, Kevin Trager, sent WDRB the following statement: 

"It’s unfortunate that policies in Washington are impacting an important local healthcare project that would benefit so many Louisville families. We are reviewing this matter to determine next steps on the incentives provided by Metro Government."

UofL Health-Mary & Elizabeth Hospital is located on Bluegrass Avenue in Louisville's Hazelwood neighborhood, off Manslick Road. To learn more about the hospital, click here.

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