Cardiologist Joseph Galichia’s latest venture, Galichia Hospital Group, is taking over management of its first hospital.
The hospital, Kentuckiana Medical Center in Clarksville, Ind., is in the Louisville metro area.
The contract to manage the hospital is for at least five years.
“The idea for Kentuckiana is to grow that business and make it very much a physician-oriented market and having the physicians heavily involved in a day-to-day process,” said Galichia, who founded Galichia Heart Hospital in Wichita and serves as Galichia Hospital Group’s chairman and CEO.
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Kentuckiana Medical Center was built in 2007 as a physician-owned facility.
“It just needed to be completed, funded and directed, and that’s exactly what we’re doing,” he said.
The hospital entered Chapter 11 bankruptcy in July after financial troubles in the recession, but Galichia said it is leaving bankruptcy. Part of the hospital’s management is now controlled by Rialto Capital Management in Miami, he said.
Rialto “took over the finances of the hospital and came to us to manage it,” Galichia said. “They infused a lot of capital into that process.”
Galichia Hospital Group was formed within the past year to manage hospitals and develop new hospitals outside of Wichita.
The group has a “five-star hotel concept with these hospitals, without the marble and glitz,” Galichia said.
Kentuckiana Medical Center employs about 200 people, according to its website.
Galichia Hospital Group plans to launch a new emergency department at the medical center, increase patient rooms from 34 to 46, upgrade equipment and add physicians, Galichia said.
Michael Phillips, former CEO of Galichia Medical Group, is serving as Kentuckiana’s new CEO.
Galichia said he hopes to expand the new hospital group in coming years.
“It’s an exciting time for us. We’re using some of the experience gained in Wichita to develop other hospitals and systems and getting involved in a new frontier,” Galichia said.
The new venture will not affect his current practice, Galichia said.
“I practice in Wichita, and I’m a clinician cardiologist and will remain so because that’s my passion,” he said. “I’m not leaving or changing that part of my life.”
He works mostly out of Galichia Heart Hospital, he said. He founded that hospital, which was sold to Hospital Corporation of America in February 2012.