As part of resetting its relationship with rural hospitals, UK will not build a new hospital at interstate junction in southeast Lexington

FRANKFORT, Ky. — The University of Kentucky will not build a hospital in southeast Lexington because it wants to do what its network of rural hospital partners want: focus on its mission as a top-level care facility for the sickest patients, a UK vice president told a legislative subcommittee Wednesday.

The proposed Hamburg-area hospital “was perceived as us stepping outside of our swim lane” by the university’s clinical affiliates out in the state, Senior Vice President for Health and Public Policy Mark Birdwhistell told the Budget Review Subcommittee on Health and Family Services.

“We heard loud and clear, ‘We want UK HealthCare to focus on taking care of the sickest of the sick. We don’t want UK out doing primary care and secondary care.’ . . . That was very eye-opening.”

Birdwhistell reiterated, “The message we received loud and clear from our clinical affiliates was, ‘When our folks get that sick, we want them to come to UK. We want them on campus. We don’t them in a community hospital.'”

UK was in the planning process for a new hospital at the southern junction of Interstates 75 and 64, and had bought the property and done some initial work. Instead of a hospital, Birdwhistell said after the meeting, UK will build a clinic with specialty services like the one it has built in a former department store in the Turfland Center in southwest Lexington, but larger: “Turfland plus.”

The university will also build other clinics to serve its employees in Lexington and the Bluegrass region, many of whom are “having to get health care outside the system,” Birdwhistell told legislators. “We feel like that is our obligation.”

Birdwhistell was speaking to the subcommittee in a new role, which he said will include centralizing the university’s “government-relations activities across campus,” including “building a better partnership with the General Assembly. I felt I was uniquely positioned to do that.”

Previously, Birdwhistell was UK HealthCare’s vice president for health system administration and chief of staff. He was secretary of the state Cabinet for Health and Family Services under Republican Gov. Ernie Fletcher, and helped Republican Gov. Matt Bevin propose changes to the federal-state Medicaid program, which he had run before becoming cabinet secretary. He appeared with Angela Dearinger, executive vice dean of the UK College of Medicine, who was briefly health secretary at the end of Bevin’s term.

The General Assembly is firmly controlled by Republicans. In the recent legislative session, Birdwhistell was the university’s point man in changing legislation that helped Pikeville Medical Center and some other rural trauma hospitals but in its original form would have reduced some of the extra Medcaid payments that UK gets for being a “safety net” hospital.

That relates to UK’s recent takeover of other hospitals in Ashland and Morehead, which Birdwhistell discussed at Wednesday’s legislative subcommittee meeting. Speaking of UK’s absorption of King’s Daughters Medical Center in Ashland, he said “Where we failed . . . is when you put that UK brand in front of that name, that brings with it an expectation of service, not predator,” which he said was the perception of some.

“And so, we’re readjusting a lot of the narratives to say, ‘When you have UK in front of your name, you go to a partner and say, ‘What can we do to help you be successful?’ It’s not ‘What do we do to crush you?’ And this is community health care. This is not our forte, so we’ve learned that lesson. . . . We can grow the workforce for those providers and not have to do it ourselves.”

Birdwhistell said UK can also serve as a backstop for its rural partners, noting that UK doctors rearranged their schedules one weekend to keep open the neonatal intensive-care unit at Pikeville, which would have had to close temporarily due to employee vacations. “That’s what we do,” he said. “That’s where we excel and that’s where we need to get back to.”

UK’s latest acquisition is St. Claire Medical Center in Morehead, where it has run a satellite medical-school program for several years. The College of Medicine also has satellites in Bowling Green and Northern Kentucky, and Dearinger said it has seven residency programs in Bowling Green, the state’s third largest city, and is starting residency programs in Ashland and Pikeville.

“We are trying to grow the number of doctors to stay in our state,” Dearinger said, calling UK’s Rural Physician Leadership Program “one of our crown jewels.” She said it has produced 120 doctors, most of whom are practicing in Kentucky, “the vast majority” in rural parts of the state. Later, she said 42 percent of all recent medical-school graduates from UK have stayed in Kentucky, far above the 24% of “a few years ago.”

Two Democratic legislators from Louisville, Sen. Karen Berg and Rep. Lisa Willner, asked Dearinger if UK has had fewer applicants for medical school or residencies due to restrictions on medical education, by which they meant the recent state law that bans abortions except in cases of threat to the woman’s life or permanent damage to a life-sustaining organ.

Dearinger said “To be honest, we have not seen a decrease.” She said she has heard anecdotal reports of students or graduates interested in obstetrics and gynecology going elsewhere, but “We are still inundated with OB applicants to do a residency at the University of Kentucky.”

Another Louisville Democrat, Rep. Sarah Stalker, noted a May 16 Kentucky Health News story, from Kentucky Public Radio, that said 15% fewer U.S. medical-school graduates applied to Kentucky residency programs in the 2023-24 academic year, and there was a 23% decline in those for obstetrics and gynecology, according to the Association of American Medical Schools., which blamed the decline on the state’s near-total abortion ban.

Dearinger said UK is still getting hundreds of “very good applicants, and we don’t have any problems filling our residency programs and fellowship programs with very high-quality young physicians. We are prioritizing as much as we can, Kentucky students, so that they will stay” in the state.

Roll call: Most members of the subcommittee did not attend the late-morning meeting. The chairman, Sen. Donald Douglas of Nicholasville, a physician, noted that at the start of the meeting and made an unusually pointed comment: “I expect my colleagues in the General Assembly to show up.”