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Maybe Not The Best Quote For A Public Hospital

September 17th, 2012 · 1 Comment

In case you haven’t yet read Linda Blackford’s excellent article about the University of Kentucky Medical Center, here’s a taste:

Karpf said that in the next 18 to 36 months, UK HealthCare will try to float bonds for $200 million, then raise $64 million through philanthropy and cash flow.

“In the end, we will have spent $870 million, all financed by UK HealthCare, with no state or federal dollars,” Karpf said. “We will still need to spend $160 million to finish out the rest of the stuff.”

UK HealthCare’s cash flow, however, has had some hiccups. A report of UK’s debt capacity revealed that UK HealthCare had borrowed $87 million from UK’s cash reserves this year, partly to finish out the new emergency rooms in Pavilion A. In addition, that money was used to fill holes caused by late payments with Kentucky’s new Medicaid and Medicare billing system.

We put our favorite bit from Mr. Illegal Organs (and don’t forget his pal) in bold, there. The bit about this latest project involving no state or federal funding.

Despite, of course, 70% of the hospital’s revenue coming from… dun dun dun… Medicare and Medicaid. So… interesting how that works.

Tags: Health Care · Spotted · Taxes

1 response so far ↓

  • 1 Jinx // Sep 17, 2012 at 3:06 pm

    It’s all about billing medicaid and medicare. Ask the University of Kentucky about its Cats Assessment lawsuit where unsigned reports were being entered into state court records as custody reports and being billed to foster care kids medicaid $$$ thousands and having no therapeutic value.