LOUISVILLE, Ky. (LEX 18) - — The University of Louisville announced Monday that they would assume control of the struggling Jewish Hospital and other Louisville area facilities.
UofL will pay $10 million to acquire the assets from KentuckyOne’s parent company, CommonSpirit Health. As part of the agreement, CommonSpirit will forgive $19.7 million in outstanding promissory notes from University Medical Center Inc. UofL will receive more than $76 million of working capital in the form of accounts receivable and cash to meet future operating expenses.
The hospitals part of this agreement include:
· Jewish Hospital, including the Outpatient Center, Rudd Heart and Lung Center, offices and parking garages
· Frazier Rehab Institute
· Sts. Mary & Elizabeth Hospital
· Our Lady of Peace hospital
· Jewish Hospital Shelbyville
· Jewish Medical Centers East, Northeast, South and Southwest
· Physician groups affiliated with KentuckyOne
Governor Matt Bevin and Economic Development Cabinet Secretary Vivek Sarin have pledged support for a $50 million, 20-year loan, half of which will be forgiven if the university meets certain criteria in areas of employment or service to currently underserved areas of the community and commonwealth.
Approved by the UofL Board of Trustees at its meeting this morning, the sale is expected to close Nov. 1.