LCMC Health’s acquisition of struggling 420-bed Louisiana hospital advances

Jefferson Parish residents voted to approve the sale of East Jefferson General, a financially distressed facility in Metairie, La., to New Orleans-based LCMC Health, according to NOLA.com.

About 95 percent of voters were in favor of the deal, which has been in the works for more than a year. Earlier this year, the sale was approved by the hospital board.

The vote clears the way for LCMC Health to take over the 420-bed hospital and add it to its network. 

Under the deal, LCMC Health will pay $90 million for East Jefferson General and has pledged to spend $100 million to upgrade it. The $90 million from the sale will be combined with East Jefferson’s cash to fund its pension plan and help pay off $135 million in debt.

East Jefferson General, the only standalone hospital in the area, has struggled to compete in an increasingly consolidated healthcare market. 

LCMC Health CEO Greg Feirn said the deal will help ensure the long-term sustainability of the hospital.

“With the public’s vote to approve our partnership, the Jefferson Parish community will continue to receive extraordinary healthcare through East Jefferson’s dedicated team of physicians and staff,” Mr. Feirn said. 

More articles on healthcare transactions:
72% of hospitals were affiliated with a system in 2018, study finds
Feds sue to block Geisinger’s partial acquisition of 132-bed hospital
Sale saves California hospital from closing


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