Behind Closed Red Doors at UofL.

What, if anything, is happening?

In their original RFP, the University of Louisville and University Medical Center, Inc. announced their intention to sign a Notification of Intent to close a deal with their preferred new partner/owner during the week of April 16. To be honest, I do not have a verifiable clue about what is going on. I have, however, heard many rumors from people closer the the potential players than I am. Since I have nothing better to write about, let me share a few of the most interesting of these. I do so to illustrate the span of concerns or perspectives that other observers have. Finally, in the absence of hard facts, l will suggest in a companion commentary what I think an agreement that is in the best interest of both our public University and the community it serves should look like.

Rumors/ Speculation:

#1. UofL will sign a new (second) letter of intent to merge in some way with the new KentuckyOne Health. This has been my working hypothesis. The two entities have put millions of dollars and many hours into planning over the last few years. UofL hired a few highly ranked former employees of Jewish Hospital in preparation and had structured their future clinical operations as if the acquisition were done. Both organizations were genuinely stunned that their deal was unacceptable to the public as a whole. Both organizations made subsequent public and private statements that they wanted to find ways to circumvent the state’s objections including alleged comments such as; “they didn’t understand,” “we’ll get this done,” or “its not over yet.” University leadership blamed hostile and political forces for their own failure and seemed to me hell-bent on getting their way as a matter of principal, saving face, and their entrepreneurial right. I concluded that the RFP process was specifically tailored to fit KentuckyOne Health alone.

#2. UofL received at least four responses to their RFP from Catholic Health Initiatives/KentuckyOne Health, Baptist Health, University of Kentucky, Norton Healthcare, and a healthcare system based in Tennessee. Since it has been reported publicly that Norton did not submit a proposal due to the self-evident lack of time and information, this speculation is probably flawed. Nonetheless, such thinking points out that there are a number of in-state entities that might have met UofL’s and UMC’s requirements. It would have been interesting and probably entertaining to see how the University and UMC might eliminate any responders.

#3. UofL received no responses to its RFP, and that the process will be reopened or its deadline extended. I would have thought this outcome to have been highly unlikely, but some of the other rumors are compatible with such a catastrophic failure. For example, there was speculation that UofL might claim that KentuckyOne Health is a secular corporation and that therefore that the Ethical and Religious Directives of the Catholic Church (ERDs) are not an issue. The other side of that speculative coin is a rumor that the Catholic Church Hierarchy has predictably rejected any softening of their clearly stated unwillingness to partner with an entity that can cause them scandal. Jewish Hospital and some of its physician practices are already moving in a direction to place them more and not less in compliance with the ERDs. (More about this later.) It would be ironic indeed if UofL was shot down by its own former white knight. Compatible with this seemingly wild speculation, I heard last week that UofL very recently reached out in desperation to Baptist Hospital for a deal, but was rejected. [See also my comment in the comment balloon attached to this post!  Something unexpected is happening.]

Comment:
The fact that I do not have a clue what is going on despite my obvious interest in the matter is in itself, evidence of how well the University of Louisville is concealing its Machiavellian-inspired strategy from the public. I think I have argued reasonably that even if the University of Louisville and its Hospital believe themselves to be private entities, the commodities they are selling are very much public: commodities of property, of vulnerable dependent individuals, of public health, of public education, and of public trustworthiness. I think the University and its Board of Trustees have made a hash of it. I fear it will take new leadership at both levels to make it right again. What do you think?

Peter Hasselbacher, MD
April 14, 2012

One thought on “Behind Closed Red Doors at UofL.”

  1. The word is out on the street that the University has announced a delay in its target date for naming a preferred partner for its Health Sciences Center. I anticipate a report in tomorrow’s Courier-Journal. There is no comment on the UofL Purchasing Department website with regard to a delay or reopening. (http://louisville.edu/purchasing/bids/RP-57-12) A Health Sciences spokesperson confirmed to me that the date had been delayed up to and including June 30 due to the complexity of the venture. I asked if the University had in fact received even a single submission, but was told there would be no comment one way or the other on how many submissions may or not have been received.

    That the time allotted by the University to prepare and evaluate even a single proposal was insufficient should be no surprise to anyone. I am now beginning to believe the doctor’s-lounge gossip that the RFP process collapsed without a viable response. The fact that any search has been slowed is a good thing for the community as it will allow the State Auditor and the Hospital Ad Hoc Operations committee to finish their work and place it before the public. What is good for the community is ultimately going to be good for University hospital.
    Peter Hasselbacher

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