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HCA Pulls Out of Lease Bidding for 2 Louisiana Hospitals

Nashville, Tenn.-based Hospital Corporation of America has decided to withdraw its lease proposals for West Jefferson Medical Center in Marrero, La., and East Jefferson General Hospital in Metairie, La., according to a Times-Picayune report.

HCA MidAmerica Division President Mel Lagarde told the Times-Picayune: "This process has simply gone on for too long, with no appearance of resolution and no end in sight. We are not prepared to continue in this process."

HCA was one of three finalists to lease the two public hospitals. The others in the running are Louisiana Children's Medical Center and Ochsner Health System, both based in New Orleans. Although HCA had offered the most to lease East Jefferson and West Jefferson — more than $500 million for a 30-year deal — some within the community wanted the for-profit HCA out of the process. In January, Jefferson Parish Councilman Ricky Templet said publicly he wanted to disqualify HCA due to accusations of Medicare fraud from several years ago.

The process has now lingered for more than a year. The hospitals reportedly received 17 separate offers before whittling down the finalists to HCA, Ochsner and Children's.

More Articles on Hospital Transactions:
Are Large Hospital Systems Best for Value-Based Care?
University of Maryland, Union Hospital Sign 2-Year Management Agreement
Ochsner Health System Reaches Deal to Manage Hancock Medical Center

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