LCMC Health, the New Orleans-based, non-profit health system, is adding three hospitals to its network in a new deal. Working with Juniper Advisory, a specialized investment banking firm focused exclusively on nonprofit organizations, LCMC has struck a deal to purchase Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital from HCA Healthcare.
The deal coincides with a new partnership with Tulane University, which will involve LCMC and Tulane joining forces to expand health care in southern Louisiana. One element of the deal calls for most of the services provided at Tulane Medical Center to move to East Jefferson General Hospital and University Medical Center New Orleans, both owned by LCMC. From there, Tulane University will repurpose Tulane Medical Center into a new academic center that could provide up to 2,000 jobs in the area.
Additionally, 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.
As for HCA, this leaves the for-profit hospital operator with only one hospital in Louisiana, Rapides Regional Medical Center in Alexandria, about three hours northwest of New Orleans. This means in the New Orleans market two systems remain: LCMC and Ochsner Health System.
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.
