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LCMC Health to buy Louisiana public hospital for $90M

Board members from East Jefferson General Hospital voted this week to sell the financially distressed facility in Metairie, La., to New Orleans-based LCMC Health, according to NOLA.com.

LCMC Health will pay $90 million for the 420-bed hospital and has pledged to spend $100 million to upgrade it. In return, LCMC Health will assume ownership of the hospital and its other assets.

The $90 million from the sale will be combined with the East Jefferson's cash to fund its pension plan and help pay off $135 million in debt.

LCMC Health said it is committed to keeping the public community hospital open.

The sale still needs approval from the Jefferson Parish Council, the state Attorney's General Office and the Federal Trade Commission. 

And because it is a public hospital, voters in the service district need to approve the transaction.

East Jefferson General is the only standalone hospital in the area and has struggled to compete in an increasingly consolidated healthcare market. 

Leaders have said they are current on their debt payments, but the hospital likely would be headed for insolvency without the deal.

More articles on healthcare industry transactions:
Private equity's takeover of physician practices has more than doubled, study finds
U of Toledo considers selling its medical center
New Jersey health systems enter clinical affiliation

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