Thursday, December 21, 2017

KentuckyOne in negotiations for sale of major Louisville facilities; selling St. Joseph Martin to Appalachian Regional Healthcare

KentuckyOne Health could be getting close to selling several hospitals in Louisville and one in Eastern Kentucky to different investors.

KentuckyOne announced Dec. 19 that it had signed a letter of intent with Appalachian Regional Healthcare to negotiate the sale of Saint Joseph Martin, a 25-bed critical-access hospital in Floyd County.

"We are pleased to be talking with this organization to guide the future of care for this unique community,” Kathy Stumbo, president of St. Joseph Martin, said in a news release. “ARH knows this community and has the experience and insight to continue improvements and investments to support patients, physicians, employees and all in this region.”

ARH is a not-for-profit health system that serves Eastern Kentucky and southern West Virginia. It operates 11 hospitals and several other health facilities. It is the largest provider of care and the single largest employer in southeastern Kentucky and the third largest private employer in southern West Virginia, according to the release.

On the same day, KentuckyOne and its parent company, Catholic Health Initiatives, announced that they had entered into"exclusive negotiations" with BlueMountain Capital Management, a New York-based hedge fund, for the sale of some of their Louisville facilities, according to a separate news release.

KentuckyOne announced in May that it planned to sell most of its hospitals and provider facilities. The Courier Journal reported: "Besides Jewish, its flagship hospital, the health system will sell 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."

The sales would leave KentuckyOne with this footprint: Our Lady of Peace, a behavioral-treatment hospital in Louisville, Flaget Memorial Hospital in Bardstown, Saint Joseph Hospital and Saint Joseph East in Lexington, Saint Joseph Jessamine in Nicholasville, Saint Joseph Mount Sterling, Saint Joseph London and Saint Joseph Berea, and affiliated provider practices.

KentuckyOne notes that the negotiations have just begun and that any transactions would be subject to due diligence and regulatory approvals. Both sets of negotiations are expected to continue over the coming months, says the releases.

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