Thank You Governor Beshear.

What Comes Next?

Today I sent the following letter thanking Gov. Beshear for his careful approach to the Commonwealth’s consideration of the proposed acquisition of University Hospital by CHI. (PDF version here.)  I sent appropriate versions of the same thanks to Attorney General Conway and State Auditor Luallen for their roles in preparing an objective analysis for the Governor. The University of Louisville has chosen to press ahead with a modified configuration of its current plan.  The community also needs to press for an explanation of how this run-away-train of an agreement was allowed to proceed so far out of the eye of the Commonwealth and the public.  In my view, the answer lies in a fundamental shift in the priorities of the University over the past two decades.  It is time for the community to reevaluate if we are in agreement.
Peter Hasselbacher, MD

Dear Governor Beshear.

I want to thank you for your careful review of the proposed acquisition of University of Louisville Hospital by Catholic Health Initiatives of Denver. When the facts gradually became available, this business decision by the University of Louisville became a source of considerable public controversy. No doubt you were bombarded by opinions from both sides and the middle. I contributed my share. The degree to which you proceeded to construct an objective and open-minded review is perhaps best evidenced by the fact that both sides appear to have been surprised by the final result. I personally feared that the momentum gained by more than two years of planning out of view of both state government and the public eye would have rendered this terrible plan unstoppable. Thank you.

President Ramsey has signaled that the proponents of the acquisition plan to press on with modifications of their basic agreement. I suppose that is their right.  At the same time the rest of us need to understand better how things could have gotten so far out of control. The report of the Attorney General was sharply critical of the University of Louisville and its governance body, even alluding to the recent Passport scandal as a potential example of how things might go wrong with a successful acquisition.  The issues of transfer of a public asset to a private one, and excessive entanglement of state and church were bad enough. To me however, the most disturbing aspect of this whole fiasco was how much of its academic, clinical, administrative, and even ethical independence the University was willing to give away in return for financial support of its commercial research enterprise. My own explanation of this result is that the University has been captured by the business community: the priority of its other traditional missions has been placed secondary to commercial research. Many of the current ills of the University of Louisville stem from this re-imaging of what it means to be a pubic university. If I may assist in a review of what has happened, and a plan for remedy, I am prepared to do so.

Respectfully,
Peter Hasselbacher. MD
President, KHPI