FRANKFORT, Ky. (AP) - The University of Louisville’s request for a $35 million state loan to assist in its purchase of Jewish Hospital started advancing in the Kentucky legislature on Tuesday.
The measure cleared the House Appropriations and Revenue Committee with bipartisan support. The bill has plenty of political clout behind it with Republican House Speaker David Osborne and the chamber’s top-ranking Democrat, Rep. Joni Jenkins, as its lead sponsors.
The loan amount in the bill sent to the full House is $15 million lower than the original request. In August, UofL announced it had received a commitment from then-Gov. Matt Bevin’s administration for a $50 million partially forgiveable loan to help the university acquire the former assets of KentuckyOne Health in Greater Louisville, including Jewish Hospital.
UofL President Neeli Bendapudi said Tuesday that the lower loan amount being requested reflects cost savings and increased revenues gained from the transaction.
Up to half of the $35 million loan would be forgiveable if certain conditions are met, including retaining jobs and providing care to underserved communities, Osborne said.
The proposed loan drew opposition from Andrew McNeill, state director of Americans for Prosperity. He raised concerns about having taxpayers “on the hook” for the venture.
___
The legislation is House Bill 99.
Please read our comment policy before commenting.