Officials with KentuckyOne Health and its parent company, Catholic Health Initiatives, say they’ve begun negotiations with a New York asset management company for the possible sale of KentuckyOne hospitals and other properties in the Louisville area.

The facilities include Jewish Hospital, Saints Mary and Elizabeth Hospital and the Frazier Rehab Institute.

KentuckyOne and CHI say in a news release that they have entered into “exclusive negotiations” with BlueMountain Capital Management and that talks will continue over the coming months.

In May, the health care companies announced plans to sell the properties, saying they wanted Kentucky One to have a smaller footprint, focused more on central and eastern Kentucky.  They said change and uncertainty in the industry had also strained KentuckyOne’s financial health.

Richard Schultz, the vice-chair of the KentuckyOne Health board, said in the release that the company chose to continue talks with Blue Mountain “following in-depth review of plans and proposals.”

Rick Howlett is WFPL's Broadcast Editor and also produces feature and general assignment radio stories.