The hospital also took issue with Beshear's statement saying that the facility's $13 million in profits in 2010 was proof the merger wasn't needed. “University Hospital is clearly a facility with significant strengths,” Beshear's statement read.
Hospital officials fired back, noting its patient mix included 20% to 25% indigent care: “University Hospital is unable to generate adequate capital from operations and is not a favorable lending risk.”
Beshear praised talks between university officials that took last week, but the governor on Monday said those conversations failed to alleviate concerns over the $620 million merger that would have created a 15-hospital statewide network, combining 318-bed University of Louisville Hospital with Jewish Hospital & St. Mary's HealthCare in Louisville with St. Joseph Health System in Lexington, Ky. The governor and university officials said CHI did not participate in those talks.
University officials said they made two proposals last week to Beshear. The first would allow the university to keep the same level of control over the hospital. Details of how that would be accomplished weren't provided. Beshear and Kentucky Attorney General Jack Conway both grew concerned that the merger would force the state to cede too much control over the hospital to CHI. State officials consider the hospital a public entity and a valuable asset to Kentucky.
University of Louisville Hospital officials also said they submitted a financial proposal to the governor, which included $50 million each year to help cover federal information technology mandates and to pay for debt service not covered by new revenue. University of Louisville Hospital officials also said they'd fund $350 million to $500 million in state bonded capital to cover facility expansion, IT capital investment and catch-up.
Beshear initially rejected the deal Dec. 30, but CHI and University of Louisville Hospital officials hoped he would reconsider. Englewood, Colo.-based CHI last week went forward with a merger combining Jewish Hospital with St. Joseph Health, dubbing the new network KentuckyOne Health.