Jewish Hospital serves many of the city’s uninsured and underinsured residents. | Photo by Tony Pacheco

Jewish Hospital and affiliated medical facilities incurred an operating loss of $56.9 million for the year ended June 30, according to a new financial report from Catholic Health Initiatives.

That’s more than $1 million per week. It’s also $12.5 million worse than the year before.

The latest data arrived as KentuckyOne Health and its parent, Denver-based CHI, are continuing to try to sell the hospital and other properties, though negotiations with New York-based hedge fund BlueMountain Capital Management are taking longer than expected.

Some sources familiar with the matter have told Insider that they expect Jewish Hospital to close. However, KentuckyOne officials have disputed that.

In its annual report, released last week, CHI said that for the fiscal year ended June 30, it generated a net income of $221 million, about twice as much as the year before. The improvement was a result primarily of lower restructuring and impairment charges and other losses, which fell by $222 million.

The nonprofit achieved the improvements, but many of its patient figures are declining: Acute admissions fell nearly 5 percent, while outpatient nonemergency room visits declined 5.1 percent. Physician visits increased by nearly 4 percent, though.

CHI CFO Dean Swindle said in a news release that the health system “saw substantial improvements in key metrics in the 2018 fiscal year.”

“Despite challenges in some markets and a difficult environment overall for health care in this country, we are pleased with the results and look forward to significant progress throughout the current fiscal year,” he said.

CHI’s latest document also further lays out the financial hit KentuckyOne took when it ended its joint operating agreement with the University of Louisville Hospital.

In the fiscal year ended June 30, 2017, UofL Hospital generated an operating profit of $47.4 million — while Jewish lost $44.4 million. That means profits generated by the university’s hospital, of which KentuckyOne at the time received 90 percent, were almost high enough to offset losses generated by Jewish.

However, last summer, UofL Hospital operations and profit reverted to the university, meaning that KentuckyOne began receiving no profit from the hospital at the same time that Jewish was reporting even greater losses.

Excluding Jewish Hospital and the other facilities KentuckyOne wants to sell, CHI’s Kentucky operations generated an operating profit of $89.1 million, up $20.3 million or nearly 30 percent, from the prior year.

CHI said that its remaining Kentucky operations “will focus on providing high quality and cost-effective care across central and eastern Kentucky, with the acute care hospitals and physician practices to position as a leader in the Commonwealth for the long-term.”

Boris Ladwig is a reporter with more than 20 years of experience and has won awards from multiple journalism organizations in Indiana and Kentucky for feature series, news, First Amendment/community affairs, nondeadline news, criminal justice, business and investigative reporting. As part of The (Columbus, Indiana) Republic’s staff, he also won the Kent Cooper award, the top honor given by the Associated Press Managing Editors for the best overall news writing in the state. A graduate of Indiana State University, he is a soccer aficionado (Borussia Dortmund and 1. FC Köln), singer and travel enthusiast who has visited countries on five continents. He speaks fluent German, rudimentary French and bits of Spanish, Italian, Khmer and Mandarin.


Comment

Facebook Comment
Post a comment on Facebook.