Ochsner takes over Louisiana hospital as LifePoint exits market

Ayla Ellison -

New Orleans-based Ochsner Health System took over management of Teche Regional Medical Center in Morgan City, La., on Oct. 1.

Teche Regional Medical Center began looking for a new management company last year after Brentwood, Tenn.-based LifePoint Health proposed to terminate its lease agreement with the hospital.

LifePoint sold three Louisiana hospitals in August 2018, leaving Teche Regional as its only hospital in the state. LifePoint, which had managed Teche Regional since 2005, wanted to exit the Louisiana market and reached an agreement with the local healthcare district to relinquish the remainder of its 40-year lease of the hospital at the end of 2018.

After contacting three health systems about succeeding LifePoint in managing Teche Regional, the district board members voted unanimously in October 2018 to exclusively negotiate with Ochsner.

The Louisiana Attorney General's office approved the partnership agreement on Sept. 25 and facility management transferred to Ochsner Oct. 1. Ochsner said it collaborated with LifePoint over the last several months to ensure a smooth transition.

Tim Allen, CEO of Ochsner's Bayou Region, expressed excitement about formalizing the partnership with Teche Regional, which has been renamed Ochsner St. Mary.

"Ochsner is excited to formally launch our relationship with the St. Mary Parish community," he said in a press release. "Today is the culmination of months of our collaboration with [Gov. John Bel] Edwards, St. Mary Hospital Service District 2 and LifePoint Health. This is an exciting step towards ensuring that we keep quality healthcare services local."

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