It’s not the “Border War” we’re used to in football, but the merger between The University of Kansas Health System and Liberty Hospital has legislators on both sides of the state line “throwing a flag” on the partnership.
The Letter of Intent announcing the merger stipulates:
- Significant investments by The University of Kansas Health System in and enhancements over time to current Liberty Hospital services, facilities, infrastructure, and technology
- Retention of Liberty Hospital employees
- Extension of The University of Kansas Health System’s highly specialized and subspecialized care to the Liberty Hospital service area and beyond
- Support for Liberty Hospital’s pursuit of Magnet designation, the nation’s most respected designation for nursing and operational excellence
- Liberty Hospital-based leadership focused on patient, staff, and community needs and opportunities for growth to meet those needs as part of the health system
- Community input, including the expertise and institutional knowledge of the Board of Trustees reflected in a new Advisory Board
- Pursuing enhanced physician and provider recruitment at Liberty Hospital
- The District will retain any taxes generated by the taxing district
- The health system will not seek or accept Missouri tax dollars
The last provision is troubling to some Kansas lawmakers; “The health system will not seek or accept Missouri tax dollars”
Kansas University Medical Center (KUMC), a separate entity from the health system, will seek Kansas tax dollars, however.
The University of Kansas Health System is governed by the University of Kansas Hospital Authority, a board established in Kansas statute that is primarily appointed by the Kansas governor and affiliated with the University of Kansas School of Medicine. However, the state hasn’t owned the health system in 25 years. It receives no state or local tax dollars.
At the request of the KUMC, Governor Kelly proposed $75 million in state funding for KU’s expansion of its Cancer Center. Cancer Center Director Dr. Roy Jensen testified about the request before the House Committee on Health and Human Services.
Jensen said it would bring increased efficiency to their operations:
“Just on our medical center campus alone, our people are in 12 different buildings. What we want to do is bring as many of those folks as possible into one building. What we have seen in other centers that have done this is a significant expansion in research funding, in collaborations, in patents, and in high-impact publications.”
Jensen described the governor’s budget request as a “challenge” to KU:
“if we’re able to raise $75 million of philanthropic funds that would match the $75 million from the state, we would take those monies and devote that to our new building.”
Interviewed by the Missouri Independent, Kansas Senate President Ty Masterson questioned KU addressing medical needs in Missouri when the Sunflower State could use the same help:
“Going outside the state when you have 29 struggling hospitals inside the state of Kansas that probably could have benefitted from an arrangement like that.”
Leading the opposition to the deal on the Missouri side is Attorney General Andrew Bailey, who has sent a letter to lawmakers recommending legislative approval of the deal.
Missouri state Sen. Greg Razer agrees:
“There are boundaries for a reason, and they’ve crossed one,” said the Kansas City Democrat, adding: “I can’t imagine the outrage of Missouri taxpayers if we opened up (University of Missouri) Health in Olathe, Kansas.”
We asked the University of Kansas Health System what benefits would accrue to Kansas taxpayers if the $75 million state subsidy were approved and why KU Health needs state support at the same time it was spending an undisclosed sum to merger with Liberty Hospital.
Media Relations Director Jill Chadwick replied, “Liberty Hospital and the health system are continuing the due diligence process, which will inform final agreements, including financial commitments… so no investment amount to report just yet.
“On average, we have more than 40 patients a day in our hospital at 39th and Rainbow from the Northland area that could be served at Liberty Hospital. Every day, our hospital is full.
“Liberty Hospital joining our hospital and expanding our Kansas City regional presence will allow us to care for patients closer to home. We can then serve more patients, including from Kansas and across our region, at our 39th and Rainbow campus, where the most complex patient needs are served.
“At the same time, we seek partnerships through programs like our Care Collaborative, which offers expertise to Care physicians and other clinicians across the state to support providing high quality care closer to home.
Editor’s note: Correction made to reflect it was KUMC, not The University of Kansas Health System, that requested $75 million from the governor.
