The city of New Orleans has put up $2 million in earnest money toward the purchase and eventual reopening of a hospital on the citys east side, which has been without its own acute-care facility since Hurricane Katrina in 2005. Frederick Young Jr., president of Methodist Health System Foundation, announced that a public hospital district is planning to purchase, renovate and reopen Pendleton Memorial Methodist Hospital as an 80-bed facility by mid-2012. The citys $2 million payment was placed in escrow earlier this month toward the eventual $40 million purchase of the hospital and two other nearby healthcare facilities from Universal Health Services. Total cost of buying and renovating the hospital is expected to be about $130 million, including federal and state funding and municipal revenue bonding by the hospital district. The former hospital had 253 staffed beds. The Methodist Health System Foundation has been acting as an adviser to the hospital district.
Late News: New Orleans puts up $2 million to reopen east-side hospital
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