On Dec 29, the last business day of 2011, Kentucky’s Governor Steve Beshear rejected the acquisition of University of Louisville Hospital by the Catholic Health Initiatives hospital chain of Colorado. If you have read any of my recent entries in this Policy Blog it will be clear that I agree wholeheartedly with his decision. I confess to being more than a little surprised, given the enormous expenditure of money, marketing, and political pressure that drove this steamroller of a business deal.
The Governor acknowledged much input from a wide range of community actors both for and against the acquisition. In his statement (reprinted here) he referred largely to the legal and policy advice of Attorney General Jack Conway’s office, which was assisted in its analysis by State Auditor Crit Luallen. I am immensely proud of these three state officers. They deserve our thanks for protecting the interests of all Kentuckians. I urge you to write to them and thank them, as I will. (Addresses available here.)
A sufficient objection to the acquisition/merger hinged on the fact that an important state and public treasure was being sold unilaterally to a private entity by the University and its hospital subsidiary, University Medical Center (UMC). The University claims that UMC is itself a private company and therefore beyond control by the state. This obviously fallacious argument was soundly and logically rejected by the Attorney General. Continue reading “Governor Beshear Rejects Proposed Louisville Hospital Merger”