Transaction Work Continues
Wednesday, January 09, 2019
Work continues on the complex and confidential discussions regarding the transition of the CHI/KentuckyOne Health Louisville-based operations to a new owner. Over the recent holidays, two update messages were sent to all Louisville Region employees to keep everyone abreast of the latest details in the divestiture discussions. Following is an overview of the information that has been shared to date. For questions and further discussion, please reach out to your department leader.
Academic Affiliation Agreement Update
Divesting Operations Negotiations
- As CHI/KentuckyOne Health continues discussions regarding the transition of the Louisville-based operations, the University of Louisville and CHI/KentuckyOne Health made the decision on December 31, 2018 to extend the Academic Affiliation Agreement (AAA).
- This new extension will carry the collaboration through April 30, 2019 and will allow for uninterrupted services at Jewish Hospital while a purchase agreement is finalized with the new owner.
- Ongoing services available for patients and the community at Jewish Hospital including: cardiology, cardiovascular and thoracic surgery, motility/gastroenterology, neurosurgery, physical medicine and rehabilitation and solid organ transplants. Additionally, there is confirmed continued funding for 56 medical residents at Jewish Hospital and Frazier Rehab Institute as part of this agreement.
- Negotiations continue to complete the transaction of Jewish Hospital and other KentuckyOne Health facilities in the Louisville market.
- We remain in a non-binding Letter of Intent agreement with BlueMountain Capital Management during the ongoing discussions about the potential sale of the Louisville operations.
- In December, BlueMountain Capital Management conducted additional site visits at several of our facilities as part of the due diligence process.
- We remain in discussions with the University of Louisville about the services provided at Jewish Hospital. During these discussions, we have also explored the possibility of a potential sale agreement with the University of Louisville for one or more of the facilities in the Louisville market.
- We believe that both BlueMountain Capital Management and the University of Louisville could potentially provide a solid future for KentuckyOne Health Louisville Region operations, and we remain in conversations with both of them.