New Orleans-based LCMC Health has agreed to purchase Tulane Medical Center, Lakeview Regional Medical Center, and Tulane Lakeside Hospital from for-profit HCA Healthcare for $150 million.
As an article on Nola.com points, out, the deal will turn the New Orleans area into a healthcare duopoly where just two systems – Ochsner Health and LCMC – will provide care for patients.
LCMC Health already has six locations: Children’s Hospital, East Jefferson General Hospital, New Orleans East Hospital, Touro, University Medical Center New Orleans, and West Jefferson Medical Center. It has a network of urgent care centers across the greater New Orleans area in addition to its physician practices, with more than 2,800 board-certified physicians.
The nonprofit health system said the partnership builds on the organizations’ long history of collaborating to improve the health of patients and communities in New Orleans and across Louisiana. Together, Tulane University and LCMC Health said they would advance academic medicine to enhance the care provided to patients; increase investment in groundbreaking research, innovative technology, and lifesaving treatments; expand opportunities to train the next generation of physicians, nurses, and scientists; and accelerate the journey to make Louisiana a destination for healthcare.
“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 statement. “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, in a statement. “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.”
In the proposed partnership, over the next 12-24 months, the majority of services provided at Tulane Medical Center will shift to nearby East Jefferson General Hospital and University Medical Center New Orleans, creating more opportunities for comprehensive, integrated care at facilities that can support new growth and provide an enhanced patient experience.
LCMC said this shift will increase access to comprehensive care in downtown New Orleans and create expanded hubs for specialty care, innovation, and academic medicine in both Orleans and Jefferson Parishes. As transition planning advances, both organizations said they are committed to ensuring a seamless transition for patients.
As part of the partnership, LCMC Health has committed to an initial capital investment of $220 million in the operations of East Jefferson General Hospital, Lakeview Regional Medical Center, and Tulane Lakeside Hospital.
This partnership will also allow Tulane University to build on a one-time impact of $1 billion on the Louisiana state economy and includes a revitalization of the Charity Hospital building and the re-purposing of the Tulane Medical Center building. This center of research and innovation will feature a new nursing program, clinical research programs, educational space for students, graduate programs in public health, social work, professional advancement, and medicine, along with a new space dedicated to research. Through these initiatives, Tulane University will add an estimated 2,300 jobs across New Orleans and Louisiana.
LCMC Health and Tulane University will build on their ongoing commitment to meaningful community partnership, including work with the Louisiana Department of Health’s Family Connects/maternal healthcare initiative, Children’s Hospital New Orleans’ ThriveKids program, and Tulane University’s Louisiana Community Engagement Alliance (LA-CEAL).
LCMC Health and Tulane University 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 during the next 90 days. LCMC Health and Tulane University anticipate the agreement will be finalized late this year or early next year, pending regulatory and governance approvals with transition planning and activities to follow.
