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U of L Hospital To No Longer Be Managed By KentuckyOne

KentuckyOne Health and University of Louisville Hospital announced Tuesday they will end their joint operating agreement. Officials said the University Medical Center will take over operations of the hospital next year.

"Today, we are presented with a very different environment than when we signed the joint operating agreement and revised the academic affiliation agreement in 2012," said Dr. Gregory Postel, U of L's interim executive vice president of health affairs, via news release.

Among the details of the agreement:

  • KentuckyOne Health, UMC, and UofL, working together, will continue to implement projects involving up to $44.8 million in capital investments at ULH by July 1, 2017;
  • KentuckyOne Health has agreed to complete the funding of the joint investment proposals as set forth in the Academic Affiliation Agreement;
  • The University of Louisville will release its rights to three seats on the KentuckyOne Health Board of Directors.

UMC is expected to take over management of U of L hospital July 1, 2017, per the release.

Ruth W. Brinkley, president and CEO of KentuckyOne Health said the organization is "pleased to move into the next phase" of their relationship with the university.

"Our longstanding partnership at Jewish Hospital dates back several decades prior to KentuckyOne Health. Since the formation of KentuckyOne Health, we have partnered in many areas and will continue to do so for many years to come, including working together on our innovations to meet the health needs of our community."

Although KentuckyOne -- which is under directives of Catholic Health Initiatives -- was brought in to help a financially floundering U of L Hospital, the university earlier this year alleged KentuckyOne was behind $60 million in obligations to support the hospital and U of L’s James Graham Brown Cancer Center.

KentuckyOne has said the hospital has not accounted for $524 million it was given in 2013.

Lisa Gillespie is WFPL's Health and Innovation Reporter.