University Hospital deemed public, could affect $620M merger

A pending three-system $620 million merger may be altered after the Kentucky attorney general ruled that University Hospital in Louisville is a public--not private--institution, reports the Louisville Courier-Journal.

According to AG Jack Conway, University Medical Center--which does business as University Hospital--is public because "it was established and created, and is controlled, by the University of Louisville."

His ruling does not directly affect the proposed merger of University Hospital, Jewish Hospital & St. Mary's HealthCare, and St. Joseph Health System, which would put University Hospital under Catholic control. However, the merger could violate the Constitution's ban on government favoring a religion, which is based on the view that University is a public hospital, notes the Courier-Journal.

University of Louisville and University Medical Center officials maintain that the hospital is private because its operator is a corporation.

Earlier this year, Conway had put the proposed merger under the microscope, investigating the terms of the deal to discover whether consumers and taxpayers are protected and how much influence Denver-based Catholic Health Initiatives would have on healthcare policy decisions at University Hospital.

For more information:
- read the Courier-Journal article