The University of Louisville has nearly 70% of share in Passport Health Plan. The company will soon be bought off by another national health company, which means the University will receive a hefty sum of money.
The Money Will Help Solve Critical Issues
The Louisville University will sell its shares in Passport Health Plan, which will grant it about $45 million to help deal with all their financial issues. Additionally, this will also help finance the School of Medicine and Physicians of Louisville University. It is a practice that hires nearly 700 doctors who also work as professors for the University’s medical school, says Neeli Bendapudi, the president of the University.
Evolent Health, which is purchasing the Passport Health Plan, promises it will pay $70 million, in accordance with 70% of Passport shares. Passport has been struggling for a while now, as the government has cut a significant amount of funds to Medicare, a company that manages Passport. Evolent will also probably invest in Western Louisville Passport Headquarters, which was never built due to the budget cuts.
Bendapudi says that the majority of the money will go for paying off debts, but also to the Health Science Campus, which is in a critical state. She also stated that the University needs a stable growth, not just a temporary fix. The growth needs to be consistent, so the first thing they plan on doing is to help themselves out of the hole.
University of Louisville Physicians has a long-standing debt that needs to be paid off as soon as possible. Also, the University’s med school has a deficit that needs to be resolved immediately in order to function correctly.
The University officials have discovered the plan for spending this money and where they will invest it in:
- $16 million for paying off the U of L bank debt
- $3.5 million for stabilizing the University of Louisville Physicians fiscal year
- $16 million for reducing the medical school deficit
When asked what caused such a significant debt of med school, the University officials refused to give the answer to this question. The University will also continue being the shareholder in Passport even after the sale — it will own around 19% of the shares.
Neeli says that this money comes at a great time because it will help take the economic burden off the University and its Health Science Center as well. She hopes this will ensure that the University will be able to function without any restraints soon.
However, she pointed out that all this money will still not be enough to resolve absolutely all the University’s problems. She says that more investments will be necessary. Although they are taking great care of the Health Care Center, she claims that they have to do a lot with very little, which is unsustainable.
Nobody could confirm how much money the University invested into Passport, but many sources claim that they didn’t invest too much annually. Bendapudi has promised to try and resolve the issues Health Care Center has been facing since she joined the University. She is also planning on maybe buying the Jewish Hospital and a few other facilities.
Bendapudi also ensured that there wouldn’t be any disruption when it comes to Passport’s customer, as Evolent has already partnered up with them. The transition won’t damage any Passport holders in any way, she confirmed.