Lawmakers Concerned About Financing For Hospital

FRANKFORT, Ky. (AP) - Lawmakers are expressing concern about how the University of Kentucky arranged financing to purchase Good
Samaritan Hospital for $35 million.

UK financed the 20-year arrangement through the Kentucky Association of Counties in a deal that could see interest rates increase under certain conditions.

Lawmakers, including Democratic Rep. Jim Wayne of Louisville, say that means UK may have to pay millions more than it agreed to if financial conditions get worse.

Frank Butler, a UK executive vice president, says KACo officials told the university that KACo would absorb any increase.

KACo executive director Bob Arnold says his organization has a record of protecting its clients and has "never passed any increases on."

The Lexington Herald-Leader reports that lawmakers urged UK to get the promise in writing.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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