Pending approval for the partnership, the New Orleans-based health system will acquire three Tulane facilities from HCA Healthcare.
LCMC Health, a nonprofit health system with six hospitals, headquartered in New Orleans, Louisiana, and Tulane University announced this week that the organizations plan to enter into a partnership to expand access of care in Southeast Louisiana. The goal of the partnership, according to the announcement, will be to enhance patient care and invest in innovation, research, and revitalization and to "make Louisiana a destination for healthcare."
Upon approval of the proposed partnership, LCMC Health, a nonprofit health system, will acquire Tulane Medical Center, Lakeview Regional Medical Center, and Tulane Lakeside Hospital from HCA Healthcare, a for-profit healthcare facilities operation, for $150 million.
LCMC Health has made the commitment to provide an initial capital investment of $220 million for the operations of its East Jefferson General Hospital to build an academic medical center, as well as operations of Tulane Lakeside Hospital, and Lakeview Regional Medical Center. Additionally, Tulane University has made the commitment to invest approximately $600 million into downtown New Orleans.
"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," Greg Feirn, CEO of LCMC Health, said 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."
Following the three facilities joining LCMC Health, the majority of services provided at Tulane Medical Center will shift to East Jefferson General Hospital and University Medical Center New Orleans following the transaction. The transition is slated to take place within the next one to two years following approval of the transaction, which will be reviewed by the Louisiana Department of Justice following a 90-day public comment period.
"Together with LCMC Health, we can combine our strengths to expand world-class academic medicine in the greater New Orleans area," Tulane University President Michael A. Fitts, president of Tulane University, said 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."
“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.”
Melanie Blackman is the strategy editor at HealthLeaders, an HCPro brand.
Photo credit: Greg Feirn, CEO, LCMC Health