Columbia/HCA Healthcare Corp. has completed a multimillion-dollar deal with the state of Kentucky that ensures its corporate headquarters will remain in Louisville.
In exchange, Columbia/HCA receives a 25-year lease to operate the 404-bed University of Louisville Hospital.
Earlier this month, doubts surfaced about whether the deal would be signed when Columbia/HCA chief Richard Scott voiced displeasure about the state's tax structure.
Under the now-signed contract, the 196-hospital chain will pay the university $5 million annually for the first five years to lease the hospital. Lease payments will increase $500,000 every five years. Columbia also will pay the university a share of the hospital's pretax profits.
The university hospital will continue to treat indigent patients, and Columbia/HCA will be reimbursed for their care through a fund in which the state, county and city contribute between $20 million and $25 million a year.