Business First – By   –  Reporter, Louisville Business First 

A state government agency issued a key approval for the Kindred Healthcare Inc.-UofL Health Inc. joint venture that’s developing a new rehabilitation hospital in the East End.

The Kentucky Cabinet for Health and Family Services issued a certificate of need to the group, a requisite green light. In Kentucky, certain health care capital projects must get approved by the state government as being in line with the state’s plan dictating how many providers may operate in the state.

The $21 million project seeks to establish a 40-bed rehabilitation hospital at 5000 Chamberlain Lane, adjacent to the Costco in the Norton Healthcare Inc.-dominated development Old Brownsboro Crossing.

In February, I reported that UofL Health and Kindred Healthcare intended to build the two-story, more-than 55,000-square-foot facility.

At that time, leaders of the two organizations said the joint venture will select a real estate investment trust, or REIT, to provide the financing to build the hospital. The UofL-Kindred joint venture would then lease the building from the REIT partner.

The joint venture will now seek other permits and proceed with design and construction, according to a joint statement from UofL and Kindred Healthcare representatives.

“The project remains on schedule with an anticipated opening in late 2022,” the statement reads. “Our joint partnership remains confident the project will attract a suitable REIT.”

Kindred Healthcare, based in Louisville, is a national player in the specialty hospital space and will manage the proposed facility. UofL Health, the clinical arm of the university, will provide physicians and experts to provide care in the facility as well as additional support services such as lab services, radiology and pharmacy support.



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UofL Health will hold a 51% interest while Kindred Healthcare will hold a 49% interest in the joint venture.

Read more about the details of the project here.