- KentuckyOne Health announced plans to trim operations to the central and eastern Kentucky region.
- The provider plans to sell the 462-bed Jewish Hospital, as well as Frazier Rehab Institute, Sts. Mary & Elizabeth Hospital, Medical Centers Jewish East, South, Southwest and Northeast, Jewish Hospital Shelbyville, Saint Joseph Martin and KentuckyOne Health Medical Group provider practices in Louisville and Martin, KY.
- A buyer was not named in the announcement but the provider stated "work is underway to ensure the transition process is deliberate while moving quickly to secure a decision on the future owners and operators of these facilities."
In announcing the news, KentuckyOne CEO Ruth Brinkley said the health system has faced “significant challenges” and pointed to “great change and great uncertainty in the healthcare industry,” which has “strained our financial health.”
“The organization will be better positioned to continue focusing on quality patient care, continue to invest in opportunities for growth and improve the overall health and wellness of individuals across Kentucky,” Brinkley added.
The move would affect mostly Louisville facilities.
This year has seen a lot of M&A activity. Just over the past week, Geisinger and Hallmark announced a joint payer-provider-esque venture while University of Kansas Health System and Ardent Health Services announced the acquisition of St. Francis Hospital in Topeka.
While Brinkley pointed to uncertainty and change, medium-sized hospitals (between 200-499 beds) have seen a steep decline in admissions between 2010 and 2013, which affects the bottom line for such organizations. When rising expense costs are added in, it's easy to see why some systems may sell off assets.
KentuckyOne Health is also part of Catholic Health Initiatives, who had a very tough 2016 when it suffered $483 million in operating losses. CHI is in affiliation talks with Dignity Health in San Francisco and recently eliminated 620 positions in Texas.