LOUISVILLE, Ky. (July 3, 2012) — University Medical Foundation Inc., a non-profit organization established to benefit the University of Louisville School of Medicine, is entering into a joint venture with American Renal Associates to form a new organization for providing kidney dialysis services to the people of the Louisville region.
University Kidney Center LLC began operations July 1 and is conducting business as the University of Louisville Renal Dialysis Center.
“This partnership allows us to continue to provide that high quality care, maintain our commitment to patients in the downtown area, and provide those services in modern facilities with additional amenities such as individual televisions and internet access,” said Eleanor Lederer, M.D., chief of nephrology at the University of Louisville.
The total transaction amount will be $21 million. UMF will hold 30 percent equity in the new joint venture.
“These funds will provide resources for support of the major missions of the medical school — research into the causes and treatment of kidney diseases,” Lederer said. “The partnership guarantees our trainees access to dialysis patients, which is a critical component of our teaching program in nephrology.”
The current dialysis unit has been an independent, single free-standing facility for nearly 50 years, making it a rarity among programs associated with an academic medical center. Recent changes in reimbursement by Medicare and Medicaid create the environment that such facilities do not have the resources necessary to continue to operate at a level of service expected by patients and to compete with the large private providers in the marketplace.