(Photo by Martin Barraud/Getty Images)
The system will be putting $220 million into its newly acquired hospitals with emphasis on provider recruitment and new equipment.
January 4, 2023 – Jeff Lagasse, Associate Editor –
The Louisiana Department of Justice has given final approval to a deal in which LCMC Health has purchased three hospitals in Tulane, Louisiana, from HCA Healthcare for about $150 million. The New Orleans-based nonprofit now boasts nine hospitals after acquiring Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital from HCA.
As part of a partnership between LCMC and New Orleans-based Tulane University, the former will be putting $220 million into its newly acquired hospitals, focusing on new facilities and equipment, and on provider recruitment.
WHAT’S THE IMPACT?
The news was not greeted with universal acclaim. In October, before the deal was finalized, National Nurses United called on Louisiana Attorney General Jeff Landry to intervene in the deal, saying the consolidation would result in just two health systems in the New Orleans metropolitan area – which NNU said could potentially affect care quality.
In a letter to Landry, NNU said LCMC’s acquisition “goes against the public interest, by leading to further consolidation, higher healthcare prices and cuts to vital services.”
In the letter, NNU Southern Region Director Bradley Van Waus noted that LCMC’s market share in the area would increase to 55%, warranting the “strictest scrutiny” by the Louisiana Department of Justice under the state’s Certificate of Public Advantage (COPA) law, meant to guarantee agreements such as this one ensure healthcare is accessible, affordable and of high quality.
