By Tim Bonfield
The Cincinnati Enquirer

University Hospital went private on Jan. 1, 1997. A lawsuit filed in 1996 to challenge that change could be settled this week.

Today, a Cincinnati City Council health committee is expected to recommend approving a proposed settlement with the Health Alliance of Greater Cincinnati. A full city council vote could occur Wednesday, said Vice Mayor Alicia Reece.

If approved, the agreement would end the city's legal opposition to the privatization. In return, the Health Alliance agrees to pay $2 million over 10 years to create a health disparities center to address longstanding gaps in health services and health status between racial groups in Cincinnati.

The Health Alliance also pledges to work with the Greater Cincinnati Northern Kentucky African American Chamber of Commerce to expand contracts with minority-owned companies.

And an executive committee will be named to monitor whether University Hospital continues to serve the poor and to help coordinate services between the hospital and city health clinics.

"This lawsuit arose out of fear that University Hospital would be sold or closed, would not have union contracts, or would no longer serve the poor. None of that came true. We have kept the mission intact," said Jonathan Lippincott, executive vice president of the Health Alliance.

When proposed in 1996, the privatization of University Hospital drew sharp criticism during several public hearings.

Proponents said the change was the only way to assure the hospital's long-term survival. Its higher costs as a public hospital had resulted in being excluded from most managed care health networks at the time. Opponents said the decision was rushed, offered no significant compensation to the city or the university for an asset worth hundreds of millions of dollars, and did not assure that the hospital's original mission - caring for the needy - would continue.

After going private, University Hospital indeed was included in most HMOs. And city officials say the hospital has lived up to its original mission.

"There was a concern early on as to whether there was a commitment to continuing to care for the indigent. But the Health Alliance and University Hospital have demonstrated that commitment," said Malcolm Adcock, Cincinnati health commissioner.

Some remain skeptical about the settlement.

Tyrone Yates, now a state representative, was among the city council members who opposed the privatization and approved starting the lawsuit.

He said the settlement doesn't address the fundamental question of who should decide the fate of public assets. Yates also said the $2 million pledge from the Health Alliance won't make much of a dent in the issue of health disparities.

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E-mail tbonfield@enquirer.com