Strategic Update: Progress on the Evolution of KentuckyOne Health

As information becomes available regarding progress on KentuckyOne Health's evolution work, news and updates will be shared here for KentuckyOne Health Medical Group providers, leaders and employees.

July 20, 2017
Work Continues on the Evolution of KentuckyOne Health

July 6, 2017
Work Streams Created to Lead Planning for the Future

June 29, 2017
ULH/JGBCC Transition Completion Update

June 22, 2017
Divestiture Property Information Now Available to Interested Parties
Downtown Campus Laboratory Services Being Centralized at UMC 

June 15, 2017
• KentuckyOne Health Leadership to Transition to Chuck Neumann on July 14
Evolution Work at KentuckyOne Health Begins
Connecting with the Community: KentuckyOne Health Sending Messages to Patients in Transitioning Markets

July 20, 2017  Strategic Update

Work Continues on the Evolution of KentuckyOne Health

As was announced previously in Strategic Update, Catholic Health Initiatives and KentuckyOne Health leaders have created three dedicated work streams to lead the process for the KentuckyOne Health transformation. The intent of the process is to create an environment that fosters interactions between work streams and among the work stream team members with a minimum amount of disruptions and overlaps.

Two of the work teams – Transition and Transaction – have begun their respective bodies of work. The Transition Work Group is being led by executive sponsor, Bruce Tassin, president of Saint Joseph Hospital and market leader for the central/eastern market, and Jon Timmis from CHI. Other members of the Transition Work Group include: Dr. Greg Anderson, Terry Deis, Dr. Dan Goulson, Sharon Hager, Kimberly Leugers, Jessie Lombardi, Don Lovasz, Kathy Love, Jeff Murphy, Jennifer Nolan, Tanja Oquendo and Charlie Powell.

The executive sponsor of the Transaction Work Group is interim KentuckyOne Health president and CEO, Chuck Neumann. Other members of this group include: Sharon Hager, Jeff Murphy and Jim Wentz, along with representatives from CHI National and Morgan Stanley.

Interviews Being Conducted

Part of the work that is already underway by the Transition Work Group includes gathering feedback from a wide range of stakeholders regarding the current and future state of KentuckyOne Health. Interviews are currently being conducted with a cross-mix of employees, physicians, community members, board members and political leaders to gauge perception of the organization and solicit comments and feedback for strategic planning. When completed, discussions with up to 100 participants will have been documented for review.

Evaluations of Responses Beginning

CHI and KentuckyOne Health have begun receiving formal responses from organizations interested in being considered as owners/operators for the planned divested facilities in the Louisville market and Martin. These are being evaluated by the Transaction Work Group.

July 6, 2017  Strategic Update

Work Streams Created to Lead Planning for the Future

As you know, Catholic Health Initiatives and KentuckyOne Health leaders are implementing recent actions approved by the KentuckyOne Health Board and Catholic Health Initiatives Board of Stewardship Trustees to transform KentuckyOne Health. In recent weeks, leaders have been developing the overall project plan for three Work Streams:

  • Transition:
    • KentuckyOne Health and Catholic Health Initiatives leadership teams will manage a comprehensive strategic planning process for the next phase of KentuckyOne inclusive of: KentuckyOne Health Partners, KentuckyOne Health Medical Group, Our Lady of Peace, Flaget Memorial Hospital, Saint Joseph Hospital, Saint Joseph East, Saint Joseph London, Saint Joseph Mount Sterling, Saint Joseph Berea, Saint Joseph Jessamine and other ambulatory, home care and affiliated entities.
  • Transaction:
    • Catholic Health Initiatives retained Morgan Stanley & Co., LLC to act as its exclusive Financial Advisor to assist KentuckyOne Health in soliciting interest from potential partners in connection with the potential sale of the previously announced facilities and practices in Louisville and Martin, KY.
  • Transformation:
    • A plan will be implemented that reorganizes the KentuckyOne Health operating structure to support the new strategy. This Work Stream includes the development and implementation of this structure.

The level of complexity and number of moving and integrated parts of each Work Stream necessitates a disciplined approach. Leaders from KentuckyOne Health and Catholic Health Initiatives have started meeting to implement the deliverables of the three Work Streams. The process is expected to take several months.

June 29, 2017  Strategic Update

ULH/JGBCC Transition Completion Update

In December 2016, KentuckyOne Health announced the evolution of the partnership with the University of Louisville, notably the transition of operation of University of Louisville Hospital (ULH) and the James Graham Brown Cancer Center (JGBCC) from KentuckyOne Health to University Medical Center (UMC).

Over the past six months, transition teams from both organizations have worked hard to shape the future of our partnership and navigate a smooth transition for patients, physicians and employees. Effective July 1, 2017, the transition will be complete and ULH and JGBCC will have officially transitioned to UMC.

What this Means for Patients, Physicians and Our Organization
Under the ongoing Academic Affiliation Agreement (AAA), University of Louisville Physicians (ULP) will continue to have privileges and deliver patient care at Jewish Hospital and Frazier Rehab Institute, through services including transplant, cardiovascular, orthopedic, rehab and neurological care. Patients at Jewish Hospital or Frazier Rehab should not be affected by the July 1, 2017 operational change.

There will be visible changes at ULH and JGBCC, such as signage and employee name-badge updates beginning July 1. There have been multiple "behind the scenes" transitions and updates, including the transfer of HR operations and the coordination of employment to UMC for several hundred individuals. The ongoing work on the transition is designed to be seamless for patients, providers and employees across Louisville.

As you are aware, this transition is separate from the strategic realignment work announced in May 2017, for which ongoing updates are provided via this communication vehicle. We appreciate your support in addressing any confusion around the two different transition processes with your teams and community partners.

June 22, 2017  Strategic Update

Divestiture Property Information Now Available to Interested Parties

The comprehensive information packet for the divestiture properties announced in May 2017 has been completed and is available through Morgan Stanley for interested parties. Requestors and KentuckyOne Health have signed non-disclosure agreements which prevents commenting on the information being shared or the process. The process is expected to take several months (or longer) and an update will be provided when new owners and operators have been confirmed.

Downtown Campus Laboratory Services Being Centralized at UMC

Since 2015, KentuckyOne Health and the University of Louisville have collaborated to develop an innovative, freestanding laboratory services structure to support patient care across the Downtown Louisville Medical Campus. This has included more than $5 million invested in both University of Louisville Hospital and Jewish Hospital labs to renovate and purchase the most advanced state-of-the-art equipment in the region with the talent of an integrated combined team.

Looking to the future, this innovative laboratory structure will continue under the operation of University Medical Center. Effective July 1, 2017, Laboratory Services employees at Jewish Hospital will become employees of University Medical Center (UMC)/University of Louisville Hospital.

Team leadership structure and staffing, along with base pay and benefits will all continue without change as part of this operation transition. This action is tied to the evolution of the partnership with University of Louisville, announced in December 2016. The change does NOT impact Tissue Typing lab employees who support Transplant Care at Jewish Hospital, or those working directly at ambulatory sites.

No Change to Lab Services on the Downtown Louisville Medical Campus
This transition of operation to UMC will not change the access to advanced laboratory services available to physicians and other providers at Jewish Hospital or any other facilities on the Downtown Louisville Medical Campus. Access and collaboration will continue to support patient care and fuel innovation and greater understanding of medical care. This action is designed to be seamless for laboratory employees, providers across the Downtown Louisville Medical Campus and for patients.

Ongoing collaboration via shared laboratory services is designed to continue to help reduce costs, increase efficiencies and improve laboratory testing through-put all in support of quality patient care.

June 15, 2017  Strategic Update

KentuckyOne Health Leadership to Transition to Chuck Neumann on July 14

Effective July 14, Chuck Neumann, current interim president of University of Louisville Hospital, will assume the role of interim president and CEO of KentuckyOne Health. Current president and CEO, Ruth Brinkley will work with Chuck in an advisory role as needed through mid-September. Chuck will report to the KentuckyOne Health Board of Directors and Tony Jones, interim executive vice president of operations at CHI.

Chuck has previous tenure at KentuckyOne Health as interim president of Saint Joseph London, and in his current role at ULH which began in July 2016. He brings more than 40 years of health care and management experience to our organization, guiding integrated health systems through successful transitions of operations, all while maintaining a focus on the priorities of the organization: patients, employees and physicians.

Evolution Work at KentuckyOne Health Begins

Following the May 12 announcement that KentuckyOne Health will be divesting of several facilities in the Louisville market and Martin in order to focus on operations in central and eastern Kentucky, it was announced that the organization will use investment adviser Morgan Stanley to lead the divestiture process. Interested organizations will receive information about the divesting facilities and practices later this month. The process will remain confidential until a buyer has been confirmed, which could take several months, or even longer.

Connecting with the Community: KentuckyOne Health Sending Messages to Patients in Transitioning Markets

KentuckyOne Health has created a series of "Community Letters" that will be published during the month of June in newspapers representing the communities that will be impacted by the divestiture of KentuckyOne Health facilities and physician/provider practices. Outlining KentuckyOne Health's continued commitment to patients in these communities, the letters below will be featured in the following newspapers:

Louisville-area facilities:

The Record
Jewish Community
Southeast Outlook

Jewish Hospital Shelbyville:

Henry County Local

Medical Center Jewish South:


Saint Joseph Martin:

Floyd County Times

Key messaging conveyed in the letters includes:

 We are working to identify new owners and operators for our transitioning facilities: Jewish Hospital, Frazier Rehab Institute, Sts. Mary & Elizabeth Hospital, Saint Joseph Martin, and Medical Centers Jewish East, South, Southwest and Northeast, along with KentuckyOne Medical Group provider practices in the affected market areas. During this transition, all facilities will remain open and continue to serve patients. Our commitment will remain to our patients and the employees and physicians who deliver excellence every day.

 We encourage patients to continue to access care at their local facility or physician's office, including appointment scheduling for annual well checks, follow-up physician visits, wellness screenings, mammograms and other health needs.

•  We also continue to hire the most qualified individuals to fill positions to continue to support our patients and colleagues.

•  If individuals have questions or concerns about changes at KentuckyOne Health, we want to hear from them. A web page has been developed where questions may be asked or concerns expressed:

Facility-specific posters and flyers have also been created to support these message points at the impacted facilities. These have also been created for KMG offices, and are in production.