By Matthew Keck —
The University of Louisville’s $35 million loan request to help with the purchase of Jewish Hospital passed one barrier of legislature Jan. 21. The Kentucky House’s Appropriations and Revenue Committee approved the university’s request, and now it moves to the full House.
“We appreciate the House Appropriations and Revenue Committee’s vote in favor of the state loan supporting the acquisition and enhancement of the properties that now are part of U of L Health,” said U of L President Neeli Bendapudi.
The request for this loan came back in August 2019 when U of L decided they would purchase KentuckyOne Health’s Louisville assets. Originally, U of L asked for a $50 million loan, but they announced that they decreased the loan to $35 million Jan. 9. Bendapudi said this was due to U of L calculating procurement savings and reductions in operational expenses.
“Under the leadership of Chairman Rudy, the committee showed its commitment not only to the teaching, research and patient care missions of the University of Louisville and its medical system, but also to the economic success of the commonwealth and the health and well-being of its citizens,” she said. “I also want to personally thank Speaker Osborne and Minority Floor Leader Jenkins for their continued support of the legislation.”
While the bill was passed, some still had doubts about this being good for the state. Andrew McNeill, state director of Americans for Prosperity, was concerned about this loan leaving tax payers on the hook.
The original terms of the loan request are being upheld: Half of the loan will be forgiven if U of L meets certain criteria, including retaining jobs and providing their services to underserved communities in Louisville. These terms were set by former Gov. Matt Bevin when he committed this loan last August.
“We continue to work with our elected officials to emphasize the importance of this loan, which will help us stabilize these assets and ensure the long-term viability of U of L Health,” said Bendapudi.
File Photo // The Louisville Cardinal