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Ochsner signs LOI to operate Louisiana safety-net hospitals

New Orleans-based Ochsner Health System, Baton Rouge-based Louisiana State University and former hospital operator BRF inked plans for Ochsner to operate Louisiana's safety-net hospitals in Monroe and Shreveport.

The announcement came Tuesday after the state, Shreveport-based BRF, the board of Louisiana State University and Agricultural and Mechanical College on behalf of Louisiana Health Sciences Center Shreveport and the LSUHSC-S Faculty Group Practice, and Ochsner signed nonbinding letters of intent for the partnership.

As part of the proposed agreement, Ochsner plans to operate University Health Shreveport (La.) and University Health Conway in Monroe, La., which are owned by Shreveport-based University Health System, the clinical affiliate of New Orleans-based LSU School of Medicine. Ochsner also plans to operate the clinical activity of LSU's Faculty Group Practice.

LSU would maintain oversight responsibility for the LSUHSC-S School of Medicine, School of Allied Health and School of Graduate Studies, according to Ochsner.

"Both Ochsner and LSU are proven partners who are committed to leading the advancement of healthcare in our state," Louisiana Democratic Gov. John Edwards said in a statement. "LSU has significant strengths in medical education and research while Ochsner, also committed to academics and research, has tremendous expertise in operating hospitals and supporting the clinical activity of large physician groups. Working together, in a more integrated fashion, we plan to successfully deliver quality, cost-effective patient care in an environment that is optimal for the continued teaching and training of our state's future doctors and healthcare professionals."

As far as governance, the proposed agreement calls for a new UHS board of directors as well as a separate community advisory board comprised of Shreveport and Monroe community members, and representatives from Ochsner, LSU and BRF.

News of the proposed agreement initially surfaced earlier this month. Ochsner and LSU are expected to finalize details in early 2018.

Alyssa Rege contributed to this report.

 

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