UofL Health’s University Medical Center (UMC) renewed a $30 million line of credit with PNC Bank in January. The initial UMC line of credit (LOC) with PNC was secured in late 2019 and executed in January 2020.

During those same months, University of Louisville officials were lobbying the Kentucky General Assembly for a $35 million taxpayer-backed forgivable loan to purchase Jewish Hospital, which the legislature ultimately delivered.

UofL Health CEO Tom Miller signed the LOC renewal on behalf of UMC. Miller is also “Secretary of the Borrower” according to the loan documents.

WDRB reported in September 2019 that Miller told a group of UofL physicians that the state loan wasn’t necessary for UofL to acquire the struggling Jewish Hospital system, saying “It’s great to have that as a backup.”

Those comments were made in a closed door meeting only weeks after Miller had testified in front of a legislative oversight committee that the “loan from the state is vital to protecting jobs, the school's medical school and medical access in underserved areas of Louisville.” (Louisville Business First)

In an effort at damage control from Miller’s admission, UofL President Neeli Bendapudi lent her credibility by saying, “I think he (Miller) might not have said it well … (he) was trying to make sure that people were not panicking.” She also said, “We really, really need that loan; we truly do.”

In addition, it was reported UofL CFO Dan Dubin “implored the board members of the university’s nonprofit foundation to ‘influence the proper people’ to support the loan.”

Two other banks submitted proposals in response to a solicitation for the original UMC line of credit. In addition, GE appears to have offered $20 million to UMC for capital purchases in March 2020.

The Bluegrass Institute argued to legislators that UofL was well-positioned to secure private financing to manage the Jewish Hospital acquisition. Only seventeen members of the General Assembly opposed the taxpayer-backed forgivable loan to UofL. ( HB 99 vote history)