FRANKFORT, Ky. — In response to positive financial performance, Governor Andy Beshear announced that University of Louisville Health is expected to repay a $35 million state loan earlier than expected.
The partially forgivable loan was given to UofL Health by the Kentucky General Assembly in March of 2020 to cover short-term operating costs following the hospital's acquisition of KentuckyOne Health.
Originally, the agreement included annual payments of principal and interest beginning April 2025 over a 15-year period.
Following a Kentucky Economic Development Finance Authority meeting on Thursday, the revised agreement will have UofL Health repaying the loan across four years, beginning in April 2022 and concluding April 2025.
"This is tremendous news for the Louisville area and the commonwealth," Beshear said.
According to Beshear, UofL Health will end the 2021 fiscal year with a net income of $96.5 million, along with an increased number of full-time employees, higher hourly wages and higher patient admissions.
“Kentucky understood the critical need to preserve health care services, jobs and expand access in underserved areas," CEO of UofL Health Tom Miller said. "Kentucky invested in UofL Health and Kentucky is reaping the return.”
With the loan from KEDFA, UofL Health was able to receive 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 details of the loan agreement remain unchanged however, 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.
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