State auditor will examine University Hospital's indigent-care trust

After the Jefferson County attorney said the fund lacked oversight, state Auditor Adam Edelen said he will audit and review the indigent-care trust in Louisville through which $32 million tax dollars flow. (Courier-Journal photo by John Rott)

The audit will determine "whether there are adequate resources to treat indigents in the Louisville area," reports Patrick Howington of The Courier-Journal. The issue came up recently when University Hospital, the recipient of the funds, tried to merge with two other hospital systems.

Earlier this month, County Attorney Mike O'Connell said the trust's board, which is appointed by the University of Louisville, "had not met in more than two years," Howington writes. The next day, U of L President James Ramsey asked Edelen to look into the trust's financial records.

Edelen spokeswoman Stephenie Steitzer said the lack of board meetings raises the question of "whether there is a proper and effective governance structure in place."

The trust receives $25 million each year from the state and $7 million from Louisville Metro Government. University Hospital uses those funds to treat poor, uninsured patients. Last year, the trust only paid for "about one-third of the facilities' charity care last year, which cost $88 million and involved more than 63,000 cases," Howington reports. (Read more)