Ochsner to take over 2 Louisiana safety-net hospitals

Alyssa Rege -

After months of negotiations, New Orleans-based Ochsner Health System and LSU New Orleans finalized a deal to assume operations at two of the state's safety-net hospitals, according to the News Star.

Under the deal, Ochsner will take over University Health Shreveport and University Health Conway in Monroe Oct. 1., according to KTBS 3. The state agreed to pay Ochsner $294 million to operate the hospitals — roughly $43 million more than the hospitals' previous operator received to take over the facilities.

The hospitals were previously operated by Shreveport-based BRF, which secured the contract from the state in 2013. Over time, BRF's relationship with LSU deteriorated, prompting LSU and the state to seek BRF's removal or find another partner, the report states.

Representatives for Louisiana Gov. John Bel Edwards met with lawmakers Aug. 29 to brief them on the deal. Legislators and the LSU board of supervisors are expected to receive documents regarding the transaction Aug. 30, the News Star reports.

LSU authorities are expected to vote on the contract Sept. 7, according to KTBS 3.

The hospitals will be governed by a board composed of directors from Ochsner, LSU, and the Monroe and Shreveport communities.

LSU President F. King Alexander, PhD, said he believes the partnership will benefit the hospitals greatly and expand them to another level, the News Star report states.

To access the full report, click here.

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