Strategic Update from Chuck Neumann

KentuckyOne Health Divesting Operations

By Chuck Neumann, Interim President and CEO KentuckyOne Health

Transaction Update

Last week, we held our quarterly KentuckyOne Health board meeting, and as planned, a large portion of the discussion centered on the ongoing negotiations with BlueMountain capital management to secure the future of the divesting operations. Like all of us, our board is eager to finalize an agreement so that we can confirm a clear path for the Louisville facilities and operations.

I and other members of the leadership team are often asked by many of you about the specific details, and why the process is taking so long. While it can seem that this process has lasted for some time, we actually began the negotiation process a short eight months ago. During this time, BlueMountain has carefully evaluated the operations of multiple facilities and locations in order to make the most informed decision for continued access to health care in the Louisville market. Additionally, given our long-standing and highly important partnership with the University of Louisville, BlueMountain continues to discuss a potential partnership with them going forward. This due diligence work is extremely complex and detailed, and BlueMoutain’s consulting partners are finalizing their evaluation of the multiple meetings and discussions that have taken place over the past several weeks.

So, many of you are now asking, “What happens next? And when will we know what this means for each of us, our colleagues, and our patients?” BlueMountain has shared with us that they need a few more weeks to analyze all of the information that has been gathered, and that they will also continue their dialogue with UofL. Given this time frame, we remain optimistic that we will reach an agreement around the end of summer. Until then, we welcome your questions and feedback; however, please understand that we may not have answers to all of your questions at this time.

In the meantime, we continue to make important progress in the area that matters most: patient care. These improvements have been demonstrated across the Louisville market and are reflected in the Living Our Mission Measures. For the divesting operations, the performance in quality, safety and service have improved in all three areas as compared to last year. For Quality, we made a 19 percent improvement over last year; in Safety, we moved from the 51st percentile to the 74th percentile (a 46 percent improvement); and in Patient Experience (Service), we improved by 40 percent.

During the board meeting, Dr. Waldridge provided an update specific to Jewish Hospital related to the cardiovascular intensive care unit (CVICU). The Jewish Hospital leadership team reviewed staffing ratios for the CVICU over the past two years and found no statistically significant changes year over year. In particular we found that the number of RN staff that are assigned to CVICU remain at or above 85 percent (which is the benchmarked rate for similar units across the nation).

For all our Louisville facilities, these statistics are an extraordinary achievement, especially during times of significant change. Thank you to all of our employees and physicians for your dedication to delivering a high quality experience to our patients. Please continue to remain focused on this important work, and we will keep you informed of any major decisions with the negotiations.