The University of Louisville Hospital, a KentuckyOne Health facility, says the system failed to make more than $46 million in financial obligations to the hospital under terms of its management agreement.
In a letter to KentuckyOne Health CEO Ruth Brinkley, officials at the University of Louisville Hospital claim the system has not paid multiple capital and investment payments to the hospital and its James Graham Brown Cancer Center. They also allege that the system has failed to provide information when requested, appoint three U of L representatives to the system's board, properly handle revenue cycle obligations and maintain patient care standards.
The letter was written by Dr. Gregory Postel, interim executive vice president for health affairs at the University of Louisville, and Joan Coleman, interim CEO of the University Medical Center, U of L's corporate entity.
KentuckyOne Health, a subsidiary of Englewood, Colo.-based Catholic Health Initiatives, has managed the hospital since 2013.
KentuckyOne Health spokesman David McArthur said the system is addressing the letter and “remains committed to the partnership with the University of Louisville and looks forward to continuing discussions."
KentuckyOne has given $524 million to U of L since March 2013 and the system intends “to meet all of our financial obligations per the agreement,” McArthur said.
McArthur also added in a prepared statement, “The vision for this partnership was meant to be transformative and not merely transactional. U of L cannot continue to expect to receive funding from donors and other investors without being accountable for achieving the outcomes and commitments that were foundational to receiving those funds.”
Since its partnership, the hospital has been investigated by state health officials and the CMS for layoffs in the nursing department and its effects on patient care.
Postel and Coleman highlighted the layoffs in the letter, writing “the number and quality of nursing staff severely declined” and it has caused “embarrassment and serious reputational harm” to the hospital.
They also wrote that KentuckyOne has failed to provide resources for the gynecology and women's health service lines as part of an agreement to maintain its accreditation.
In a prepared statement, University of Louisville spokesman Gary Mans said, “It's our hope that utilizing the mechanisms set out in both agreements KentuckyOne Health will be able to cure these breaches and we can continue to move forward in our partnership for meeting the health care needs of the people of Kentucky and beyond.”
