LCMC Health has acquired three HCA Healthcare-owned hospitals in southeast Louisiana for $150 million, following approval by state regulators, the nonprofit system announced Tuesday.
Tulane Medical Center, Tulane Lakeside Hospital and Lakeview Regional Medical Center are part of New Orleans-based LCMC and have transitioned to nonprofit ownership through the deal. The approximately 1,900 employees at the facilities will continue to have jobs, in addition to "new and expanded opportunities for growth and advancement," according to a news release. LCMC has agreed to invest $220 million over five years in the three facilities.
HCA acquired Tulane Medical Center in 1995 and merged its Lakeside Hospital a decade later, forming Tulane Health System. Lakeview Regional joined the system in 2017.
A larger partnership announced in October between LCMC and Tulane University will focus on specialty care, academic medicine, innovation and training in southeast Louisiana. Tulane will integrate its facilities with LCMC within the next two years. During that time, Tulane Medical Center will shift most of its services to East Jefferson General Hospital and University Medical Center New Orleans.
Tulane has been investing in its research platform and doubled its external funding for the medical school in the last several years. With the partnership, it plans to keep growing clinical trials and translational research in cardiology, cancer and infectious diseases, as examples, Tulane President Michael Fitts said.
"It really did all sort of come together at a pivotal moment for both of us, and it'll be transformational for the city of New Orleans and the Gulf South state of Louisiana," LCMC Health CEO Greg Feirn said. "We're expanding on a partnership that already existed, so creating more consistency and efficiency across our healthcare system."
The current Tulane Medical building will house a new nursing program, clinical research and educational space. Tulane University has agreed to invest about $600 million into downtown New Orleans, a project that also includes revitalization of the Charity Hospital building. Tulane plans to move into approximately 400,000 square feet of that building starting as early as 2025. The space will eventually house 600 or more researchers, Fitts said.
The partnership received some pushback from nurses, including members of National Nurses United, who questioned how it would affect patient care and healthcare costs in the region. The deal leaves just two healthcare providers in the area—LCMC and Ochsner Health.
