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Three major Kentucky health organizations to create a statewide health system

By Healthcare Finance Staff

Three major Kentucky healthcare organizations are forming a statewide healthcare system. The new system created by the University of Louisville Hospital/James Graham Brown Cancer Center, the Jewish Hospital & St. Mary’s HealthCare in Louisville, and Saint Joseph Health System in Lexington will have 91 locations including hospitals, clinics, specialty institutions, home health agencies, satellite primary care centers and physician groups.

In a press release about the partnership, Bob Hewett, who will be the first chair of the system’s community board of trustees said, “There is so much more we can accomplish together. Most important, we will be increasing access to basic and advanced health services. That will lead to improving the health not only of individual patients, but of entire communities. At the same time, we will work to lower costs as we advocate for the poor and underserved in our communities.” Hewett is currently a board member of the Saint Joseph Health System. 


The new system will have a medical staff of more than 3,000 physicians, encourage use of telemedicine for greater access to care, and will enable the research being done at its associated academic centers to move more quickly to the bedside.

The sponsors of the health system are Jewish Hospital HealthCare Services, University of Louisville and Catholic Health Initiatives, a national nonprofit health organization based in Denver, Colo. Jewish Hospital & St. Mary’s HealthCare was formed in 2005 through a joint venture between Jewish Hospital HealthCare Services and Catholic Health Initiatives. Saint Joseph Health System is also part of Catholic Health Initiatives.
 
Plans call for Catholic Health Initiatives to make an incremental capital infusion of $320 million in support of the system’s mission and health care services statewide. In addition, the new system will invest $200 million in capital to expand the academic medical center in Louisville and $100 million in statewide health care services.

The partnership agreement still must receive regulatory and church approvals before becoming effective, which could take 12 months. Until they have received regulatory approvals, the partners will continue to operate as separate organizations.