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HCA deal for Louisiana hospital blocked by Tulane contract

Nashville, Tenn.-based Hospital Corporation of America's relationship with Tulane University in New Orleans has caused the hospital operator's discussions about taking over East Jefferson General Hospital in Metairie, La., to end, according to The Times-Picayune.

HCA operates Tulane Medical Center in New Orleans and Tulane-Lakeside Hospital in Metairie. The operating agreements for those facilities contain non-compete clauses, and HCA would violate those clauses if it entered into a transaction to operate East Jefferson General Hospital, according to the report.

HCA attempted to restructure the partnership agreement it has with Tulane to allow for the transaction. However, the hospital operator failed in that attempt, which led to negotiations over HCA taking over East Jefferson General Hospital coming to an end.

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