LOUISVILLE, Ky. — A $35 million, partially forgivable loan issued to UofL Health by the Kentucky General Assembly in 2020 now has an accelerated repayment schedule in response to positive financial performance.
The loan was initially approved by the Kentucky Economic Development Finance Authority (KEDFA) in March 2020 to provide funding to absorb short-term operating losses and capital expenditures following the acquisition of KentuckyOne Health. The loan agreement initially included annual payments of principal and interest beginning in April 2025 over a 15-year period. Following an amendment approved during today’s KEDFA meeting, UofL Health now intends to repay the loan across four years, beginning in April 2022 and concluding in April 2025.
Since the acquisition, UofL Health continues to report a positive financial performance, ending fiscal year 2021 with a net income of $96.5 million, along with an increased number of full-time employees, higher average hourly wages and higher patient admissions. UofL Health provides care to over 1.5 million patients each year and currently employs more than 7,900 full-time employees.
“Our 12,000 health care heroes are the key to its success, but we share this credit with the entire commonwealth,” said Tom Miller, CEO. “Kentucky understood the critical need to preserve health care services, jobs and expand access in underserved areas. Kentucky invested in UofL Health and Kentucky is reaping the return.”
Other details of the loan agreement remain unchanged, including the ability to forgive up to 50% of each annual loan payment based on UofL Health meeting either of two options:
- Retain 5,880 full-time, Kentucky-resident jobs being paid an average hourly wage, excluding benefits, of at least $35; or
- Meet both of the following requirements in Medically Underserved Areas (MUA): Continue operating existing facilities and open at least one additional facility within the MUA or in close proximity to serve the MUA, and increase the total number of UofL Health and its affiliates family medicine access points providing health care services from 10 to 14 in the MUA.
In the past year, the organization opened two new Urgent Care Plus locations in underserved areas, and 107 physicians have been recruited to improve care for the underserved population.
The company used the $35 million KEDFA loan for critical upgrades and equipment needs at the acquired facilities. The most significant project was a replacement of the IT infrastructure to support electronic medical records. Other major projects include acquisition of surgery power equipment, establishing a geropsychiatric unit and redevelopment of an epilepsy unit at UofL Health Jewish Hospital; a cath lab and detox unit at UofL Health – Mary & Elizabeth Hospital; expansion of 10 additional beds for UofL Health – Frazier Rehabilitation Institute; and air conditioning upgrades for UofL Health – Shelbyville Hospital.
UofL Health’s positive financial outlook continues recent economic momentum in the commonwealth, as the state builds back stronger following the effects of the pandemic.
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