LCMC Health has reached an agreement to acquire East Jefferson General Hospital, marking the fulfillment of a partnership and a shared commitment to providing metropolitan area residents extraordinary health care with heart.
We entered into this agreement because we believe the east bank should have continued access to the highest quality care. Both LCMC Health and East Jefferson General Hospital are committed to putting the residents of Jefferson Parish and the metropolitan area first throughout this process. East bank residents will have the final decision, as the process includes approval by the Jefferson Parish Council and a public vote. But first, let us give you some background on the institutions and why this acquisition is in the community’s best health care and financial interests.
LCMC Health is a Louisiana-based, not-for-profit hospital system that has served the health care needs of the Gulf Coast region since 2009. LCMC Health currently manages Children’s Hospital, New Orleans East Hospital, Touro, University Medical Center New Orleans, and West Jefferson Medical Center — each with its own unique history and commitment to serving its community.
East Jefferson General Hospital is a publicly owned, not-for-profit community hospital that was formed in 1965 and opened in 1971. With more than 2,400 employees, more than 600 physicians, and nearly 50 years serving the east bank community, East Jefferson General Hospital has become an institution featuring quality care that has been validated through numerous organizations’ and accrediting bodies’ high ratings of the hospital’s services.
Both of our organizations are focused on providing New Orleans area residents and beyond with extraordinary health care, and we share many additional goals and values. Our newly announced partnership offers a mutually beneficial opportunity to both LCMC Health and East Jefferson General Hospital, while preserving and strengthening the future of the outstanding community care provided by East Jefferson General Hospital.
Bringing LCMC Health and East Jefferson General Hospital together means patients can continue to see their regular care teams and physicians, and East Jefferson General Hospital’s talented team members will have access to increased career mobility and opportunities within the LCMC Health family.
As part of the LCMC Health family, East Jefferson General Hospital will also have increased access to capital to grow and reestablish its financial strength, ultimately benefiting the residents of Jefferson Parish. In addition to our purchase price of $90 million for the hospital and its operations and up to $15 million in performance-based payments, LCMC Health is making a commitment to invest $100 million in capital improvements over the next five years.
We are excited about bolstering the strength and ensuring the future of an incredible community hospital — one with an award-winning legacy. We believe our partnership will provide quality patient care for the residents of Jefferson Parish, and we are grateful to be part of this extraordinary community.
Greg Feirn is CEO of LCMC Health. Gerald Parton is president and CEO of East Jefferson General Hospital.