LCMC Health Plans to Acquire Tulane Hospitals
NEW ORLEANS – On Oct. 10, LCMC Health and Tulane University announced major partnership plans.
If the proposed $150 million deal is approved by the state Attorney General’s Office, Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital will be acquired from HCA Healthcare, a national for-profit operator of health care facilities, and will join the other six hospitals in the nonprofit LCMC Health system. An LCMC spokesperson said employees at the three hospitals will keep their jobs.
The deal will significantly increase LCMC’s footprint and essentially reduce the number of major health care operators in greater New Orleans to two: LCMC and Ochsner Health System.
“LCMC Health and Tulane University have shared values and a vision to partner to bring the best of community healthcare and academic medicine to all those we serve,” said LCMC Health CEO Greg Feirn in a press release announcing the potential deal. “With this transformational partnership, we can build on our strong history of collaboration with our academic partners, Tulane University and Louisiana State University, to do more for our patients, communities and region together than would be possible as separate organizations. By joining forces, we will increase access to comprehensive and specialty care across our region, ensuring all our patients and communities receive extraordinary care, right here at home.”
“Together with LCMC Health, we can combine our strengths to expand world-class academic medicine in the greater New Orleans area,” said Tulane University President Michael A. Fitts. “Academic medical centers provide the most complex and high-quality care and are the birthplace of new treatments and technologies. This partnership will help drive clinical, educational and economic innovation and growth that improves the quality of life across our entire region.”
The plan calls for the majority of services provided at Tulane Medical Center to move to East Jefferson General Hospital and University Medical Center New Orleans.
LCMC Health said it will make an initial capital investment of $220 million at East Jefferson General Hospital, Lakeview Regional Medical Center and Tulane Lakeside Hospital. The funds will help “maintain the standards of care and patient experience, invest in new equipment and facilities as well as ensure these facilities attract the best and brightest medical providers,” said a spokesperson.
Tulane, meanwhile, is investing in a revitalization of the Charity Hospital building and the repurposing of the Tulane Medical Center building in the hopes of creating new academic programs and more than 2,000 new jobs.
LCMC Health and Tulane University have filed the intent to transition into this combined structure with the Louisiana Department of Justice. A review by the Louisiana Department of Justice and a public comment period will take place over the next 90 days. The two organizations hope the agreement will be finalized late this year or early next year, pending regulatory and governance approvals with transition planning and activities to follow.