KentuckyOne Health Is More Than “Talking” with Tenet Healthcare.

In with both feet. But how far?

26 July 2014, 3:30 pm

Reports that KentuckyOne Health was talking with Community Health Systems of Nashville about the sale of Jewish Hospital drew unequivocal denials from KentuckyOne. The hospital system and its partner, the University of Lousiville, finally broke silence and admitted that the couple had gotten off to an unanticipated (but perhaps not unpredictable) rocky start to their marriage. An additional report that Catholic Health Initiatives was talking with Tenet Healthcare has not been denied publicly to my knowledge, as of course it could not be. The fact is that Tenet is now fully engaged in providing services at Jewish Hospital. How much of the Jewish Hospital operation has been transferred to Tenet, and the ultimate outcome of the involvement of yet another out-of-state-corporation in Louisville remains to be seen.

There were of course any number of reasons CHI might wish to talk to Tenet. For one thing, since 2012, the two large corporations have been partners in jointly owned Conifer Health Solutions. Conifer specializes in “revenue-cycle” services for hospitals, including many, if not most of CHI’s. To my non-business mind, such services involve getting every last nickel that’s due out of patient billings. Since KentuckyOne Health has been losing money for CHI, it is not surprising that calls for outside help may well have been suggested or demanded.

Tenet advertising for jobs.
In any event, there is no doubt that Tenet is in the Louisville market now. The job-search website “Glassdoor” is currently listing at least 32 job offerings at Jewish and Frazier Hospitals. The jobs are for: Patient Access Representative, Insurance Followup Representative, Health Information Management Specialist, Accounts Receivable Representative, Patient Scheduler, Billing Representative, Accounts Receivable Representative, and Patient Advocate Representative. These positions are being offered under the Tenet Healthcare logo, with “Conifer acting as part of the Tenet and CHI Family.” A typical job description can be seen here.

Is no one doing these things now?
I do not know if these are new job positions, or if a prior sub-contractor or employees are being replaced. I am not aware that Tenet and Conifer were already in Louisville. I commented previously on what appeared to be a rash of other hirings following the layoffs of last March.

It would appear to me that CHI is looking to further stem the financial losses and the mega-million dollar hole in its Kentucky budget by more careful management of patient intake and billings. There are certainly other hospitals in the country that have outsourced this function, sometimes to their regret. I am unaware if Jewish or KentuckyOne has been going it on their own up to now, or how other KentuckyOne hospitals around the state handle their billing and revenue matters. There is no mention of job offerings at St. Mary & Elizabeth or at University Hospital. As far as I am able to learn, this represents a change for Jewish Hospital, an institution that in my opinion has already seen many abrupt changes in management or consultancy over the past few years. To offset reports of ongoing financial losses and problems with patient and doctor retention, some degree of stability will be reassuring.

I trust that others with better connections to the business community or my colleagues in business journalism will flesh out more of the details and their significance. As always, If I have made an error in fact, please help me correct it.

Peter Hasselbacher, MD
President, KHPI
Emeritus Professor of Medicine, UofL
July 26, 2014