Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Proposed mergers would combine 34 Louisiana hospitals

Lafayette (La.) General Health and Jennings (La.) American Legion Hospital have signed a letter of intent to merge.

Under the proposed transaction, LGH will assume management and operations of 49-bed JALH, and enter into a multi-year lease of the hospital and its affiliated clinics.

The healthcare organizations will now enter into a period of due diligence, which is expected to last several months. They hope to finalize the agreement next fall and close the deal as early as Oct. 1.

"The partnership with Lafayette General Health opens up tremendous opportunities for continued improvements and growth at Jennings American Legion Hospital," JALH Board Chairman Arthur Matte said in a press release. "We have a strong, healthy hospital, but healthcare is complex and rapidly changing, and we need a partner that can help us thrive into the future and meet the evolving needs of our community."

LGH is also exploring another deal. In September, LGH signed a letter of intent to merge with New Orleans-based Ochsner Health System. Under the proposed agreement, Ochsner would invest $365 million over 10 years in LGH's facilities. The deal is expected to close in spring 2020, pending regulatory approvals.

If both transactions were finalized, the end result would be a combined system that includes 34 hospitals.

More articles on healthcare industry transactions:

Private equity firm sets sights on Quorum Health
Prospect Medical Holdings can't consider $50M acquisition offer
Baylor Scott & White to transfer operations of Texas community hospital

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers