M&A Roundup: KentuckyOne Health forms $1.4B JOA
The agreement caps a year-long effort by UMC and the University of Louisville to find a suitable partner while allowing them to retain local control of the facilities. All UMC policies for women's health, end-of-life care, and pharmacy remain unchanged. UMC will continue to manage and operate University Hospital's Center for Women and Infants. All women's health services, which includes the full range of reproductive services, will continue to take place at CWI, at the same location and provided by the same people.
The JOA is scheduled to take effect on or before March 1, 2013. KentuckyOne will oversee most of the day-to-day operations, while UMC will retain ownership of its assets. UofL, UMC, and KentuckyOne Health have also entered into an academic affiliation agreement.
The JOA has the support of Kentucky Governor Steve Beshear and Attorney General Jack Conway, who said his review of the plan addressed concerns raised about transferring ownership of a state asset.
"The executive branch of the Commonwealth of Kentucky retains authority to oversee the new agreement. It also appears that the same health services will continue to be available on-site at University Hospital," Conway said in prepared remarks. "This partnership will help University Hospital secure financial stability, protect care for the indigent, and continue the excellent research and teaching that is conducted at our hospital."
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