Louisiana health system ordered to shut down operations as lawsuit continues

Thibodaux (La.) Regional Medical Center has been ordered to halt operations in nearby Houma amid an ongoing lawsuit between it and Houma-based Terrebonne General Health System, according to an April 12 report in Houmatoday.

A Terrebonne, La., judge ordered the ceasing of operations at two Thibodaux Regional clinics effective May 5. Thibodaux Regional will appeal the ruling, according to a hospital spokesperson.

The dispute centers around the Hospital Service District Law, which essentially limits hospital systems from crossing into neighboring authorities to offer their services. Thibodaux Regional maintains that its conversion into a nonprofit hospital system allows it to expand where it wishes.

Terrebonne General Health lost a similar case in 1998 when it attempted to expand into nearby Raceland, La. The system is using that as case law in its current lawsuit with Thibodaux Regional, according to the report.

The two affected clinics include an urgent care location serving approximately 20,000 people annually and a general clinic serving about 10,000 patients, the report said. Terrebonne General Health operates its flagship 321-bed hospital, employing 1,500 people, describing it as "the largest community hospital in the Tri-Parish region," according to its website.

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