Here’s Beshear’s statement:

“For the last several months, I have consulted with Attorney General Jack Conway, State Auditor Crit Luallen, officials from the University of Louisville and the proposed merger partners, health care and finance experts, and concerned citizens from across the Commonwealth on a proposal to merge University Hospital and Jewish Hospital & St. Mary’s Healthcare in Louisville with those owned or controlled by Catholic Health Initiatives in Kentucky, in order to create a statewide network of health care facilities.

University Hospital provides high-quality health care services, and I greatly appreciate their efforts to improve those services, improve the health status of Kentuckians and find ways to grow and expand the mission of the University health care system.

Significant legal and policy concerns have been raised about this proposed merger, including constitutional and public policy questions about the influence of a religious entity on a publicly-owned institution, especially regarding reproductive issues. In addition, if for some reason in the future the merger partners were forced to separate, the potential costs of that unwind could be significant and have a detrimental impact not only on University Hospital, but also on the taxpayers of this state.

However, most troubling to me is the loss of control of a public asset. University Hospital is a public asset with an important public mission, and if this merger were allowed to happen, U of L and the public would have only indirect and minority influence over the new statewide network’s affairs and its use of state assets. Many of these issues have been raised and analyzed in a report from Attorney General Jack Conway, who recommends not going forward with the merger.

U of L and the other merger partners have worked hard to address the concerns that have been raised, and I appreciate those efforts.

However, after exhaustive discussions and research, I have determined that this proposed transaction is not in the best interest of the Commonwealth and therefore should not move forward. In my opinion the risks to the public outweigh the potential benefits.

I understand that the changing health care industry has caused significant challenges for both University and Jewish Hospital & St. Mary’s Healthcare. I am committed to assisting both facilities in reaching our shared goals of providing quality care, especially to our poorest and most vulnerable citizens, as well as finding ways to ensure both facilities remain on strong financial footing. These hospitals provide critical services, and we stand ready to help them fulfill their missions and succeed in a changing health care economy.

Here’s Jack Conway’s:

“My staff and I conducted a thorough and comprehensive review of the proposed hospital merger. This presented an unprecedented combination of entities and a myriad of legal and public policy issues. Some of those issues were addressed by the parties, but many of them were not resolved. Of particular concern was the loss of control of a valuable state asset and the services it provides to the public.

It is my opinion that the Governor should not at this time approve the proposed new affiliation agreement and new lease. I support the University of Louisville and its mission, but it is a public agency with an obligation to inform and work with state government regarding the control of a public asset such as University Hospital.

I appreciate Gov. Beshear’s careful analysis of this merger, and I believe he ultimately made the appropriate decision on behalf of the Commonwealth’s interests.

I am committed to working with all parties to ensure that our hospitals continue to fulfill their missions as leading trauma centers, teaching hospitals and nationally renowned research facilities.”