Category: Hospital Mergers

UofL Meets Some Potential New Partners.

Pre-submission Conference for Request for Proposal RP-57-12
University of Louisville and University Medical Center, Inc.
Feb 28, 2012

Transitional Research Building

Investing In and Delivering Health Care Services, Education, and

Research in Conjunction with University of Louisville and University Medical Center

The University of Louisville and its Hospital have been seeking a new partner to help with their various diverse missions. I attended the Pre-Proposal Conference that was held today in UofL’s new, palatial, and seemingly unpopulated Transitional Research Building. This meeting is a requirement of Kentucky’s contracting and purchasing regulations. In addition to University folks that I recognized, there were perhaps 10 or 11 other individuals. The audience included representatives from Baptist, Norton, and KentuckyOne Health. There were two or three people whose affiliation was unknown to me. The meeting began with introductions of the 5 panel members from UofL and its Hospital: Attorney Glenn Bossmeyer, Dr. Gregory Postel, CEO James Taylor, Facilities VP Steve Amsler, and Asst. Purchasing Agent Curtis Monroe. (Mr. Amsler was previously Vice President for Facilities at Jewish Hospital/St. Mary’s. I cannot recall that he said anything at the conference. Neither did I recognize any questions asked by representatives of KentuckyOne.) Continue reading “UofL Meets Some Potential New Partners.”

Information About UofL and UMC Partner Search Requested

Can you help Public of Louisville understand what is happening with regard to the ongoing efforts of the University of Louisville and University Medical Center Inc. in their undiminished quest for a new partner before it it too late do anything about it?

Over the past few months, in our community and in this Policy Blog, there has been much discussion about the University of Louisville’s efforts to find a statewide partner for its clinical, teaching, and research programs.  Its first solution fell flat over issues of secrecy, intrusion of religious directives into academic and clinical life, giving away a public asset to a private corporation, and other substantial deficiencies.  Given the initial reactions by University officers, no one should be surprised that they are at it again.  A request for a proposal (RFP) has been filed seeking a new partner.  To my viewing, it looks like the RFP has been written for a single preferred responder, but you can judge for yourself.  Worst of all, the whole process is now cloaked in even more secrecy then the first go around.  There will be a total blackout until after the papers are signed.  There is no acknowledgment that the Governor or anyone else will have anything to say about it.  I would like to think that that is incorrect.  I doubt even the University would have the audacity to act against overwhelming concerns of the public it claims to be serving. However, I have yet to overestimate University’s chutzpah!

I have heard a number of things third-hand about how the University plans to rush this deal through to completion before the issue of whether or not University Medical Center Inc., is a private or public entity is settled in the courts.  I am therefore reluctant to repeat the information in this Policy Blog without corroboration.  If you have first-hand information about how UofL or UMC is proceeding, or if there is any continuing role of KentuckyOne Health in this saga, I hope you will contact me directly using the “Contact Us Link” in the right-sided panel of this page.  I am also interested in KentuckyOne Health’s plans for St. Mary’s Hospital.  Will it remain a hospital, or will its certificate of need be transferred to a new east-end facility as Norton did with the former Humana Southwest Hospital? I promise you, I will never reveal my sources.  If you wish, you may call me at the Institute’s number, 502.802.5092.  Feel free to contribute a comment here or elsewhere on the site..  Registration is not required.

The public deserves honesty and transparency.  Please help us to that end.

Peter Hasselbacher, M.D.
Feb 27, 2012

University Medical Center Inc., Ad Hoc Operations Review Committee Meets.

Background of Internal University Review.

Last January, the University of Louisville announced that it was forming its own Internal Review Committee for University Hospital. In large measure, this must have been in reaction to the increasing calls for an audit of the Hospital’s use of the QCCT fund for indigent medical care. Indeed, the Auditor of State Accounts had already announced he would perform such an audit. Surely the University and its Hospital must already know a great deal about its own finances. After all, having a handle on internal finances is part of the job of running a hospital. Furthermore, for several years the University had been preparing for a merger/acquisition for which both internal and external reviews by the potential partners would have been mandatory as part of due diligence. University leadership admits it knows enough about the Hospital’s finances to submit an RFP to take on a new partner. Nonetheless, there is nothing wrong with taking a fresh look at the way any business is being run. Good for them!

This new committee did not emerge in a vacuum however. The University is emerging from a period of intense criticism of the way it interacts with its community– indeed that criticism continues. In my opinion the committee’s formation at this time is also part of an intensive and comprehensive public relations effort to improve or at least paper over its image. I believe this is a major reason why the offer was made that the review committee’s meetings would be open to the public. That is a major reversal of the tactics used by the University when it tried to merge with Catholic Health Initiatives and Jewish Hospital/St. Mary’s. In those proceedings, the University attempted to operate in secrecy until the last minute when it was forced to reveal at least part of its plans. The community did not like those plans. We now have an opportunity to see if the University and its leadership have changed their spots. This jury of one is still out.

Summary of the first meeting continued below. Continue reading “University Medical Center Inc., Ad Hoc Operations Review Committee Meets.”

University of Louisville Looking for New Hospital Partner, or an Old Flame?

No one who has corresponded with me believes that the University has given up its quest to be acquired by Catholic Health Initiatives. The Chairman of the Hospital’s Board of Trustees pointedly refused to answer a direct question on the matter. One correspondent at Jewish Hospital believes the institution is treading water until the University can jump in the pool. I have already commented on what I believe is the University’s strategy to present the governor with an offer he cannot refuse. Indeed, I am hearing secondhand that President Ramsey is telling supporters he will push this thing through. It certainly seems as though that is true.  (If you have first-hand knowledge, I would love to hear from you.)

Today, reporters Chris Kenning and Patrick Howington tell us about yesterday’s closed session of the Trustees of the University of Louisville giving its medical center permission to issue a request for proposals to seek a new partner. (I thought closed sessions weren’t allowed for this sort of thing? So much for transparency.) Recall that failure to follow state procurement rules was one of many criticisms of the Attorney General’s Office supporting the rejection of the first merger effort. The University appears to be doing some backfill work. I have not yet seen this RFP, but University officials are quoted as saying they are seeking a “health care entity with a statewide network and capital resources to help maintain the hospital teaching and indigent care missions.” It seems to me this will be very short list. I will not be surprised that the RFP is written so narrowly that there is only one entity on earth that will fit the bill. (That is what some unethical employers do when they want to hire a particular person but yet be seen as following the procedures of affirmative action employment.) No doubt I will be proven wrong and will apologize for expressing an erroneous opinion. In fact, it just occurred to me that I am dead wrong. The University of Kentucky with its statewide presence and deep well of state support could easily be an eligible entity. The more I think of it, the better the idea seems! Brilliant!!  (Of course there are also the Baptist and Norton systems.)

KentuckyOne Health told its physicians today that it has been aware (was anyone else?) of the process and believes that a “close working relationship with the University of Louisville School of Medicine and University Medical Center is important to our vision as an organization.” In fact they seem downright eager to respond to an RFP.

Shame on the University of Louisville for dragging its community through this monkey business all over again. Arrogance is a descriptor that comes to mind. Of course, if you know you will ultimately get your way, how you appear is of less consequence. There are many in our community who want to help the University and to protect our public hospital. The University is making it difficult for us to do so.

Peter Hasselbacher, MD
Feb 17, 2012

 

A printable PDF version of this post is available here.