NEW ORLEANS – The Jefferson Parish Council has unanimously approved an agreement for LCMC Health to acquire East Jefferson General Hospital (EJGH). LCMC Health and EJGH recently reached a definitive agreement for LCMC Health to acquire the Metairie, Louisiana hospital, which was approved by both organizations’ Boards of Trustees.
The acquisition will be finalized pending a public vote by residents of the East Bank of Jefferson Parish with a target date of Saturday, May 9.
Under the terms of the agreement, LCMC Health will pay a guaranteed purchase price of $90 million for East Jefferson General Hospital and its operations, $15 million for performance-based payments and invest a minimum of $100 million over the next five years, totaling up to $205 million. The acquisition would allow East Jefferson General Hospital to pay off its current bonds, fully fund employee pension funds and satisfy all outstanding financial obligations.
It will also ensure the longstanding job security of all the hospital’s nearly 3,000 employees. East Jefferson General Hospital would maintain its current name and culture and would become a part of the LCMC Health family, joining Children’s Hospital New Orleans, New Orleans East Hospital, Touro, University Medical Center New Orleans, and West Jefferson Medical Center.
“LCMC Health is excited to add East Jefferson General Hospital’s team to our family of hospitals,” said Greg Feirn, CEO of LCMC Health. “We share a long tradition of delivering high-quality healthcare with a focus on clinical excellence, education, technology and research. We are confident that together, we can sustain and expand our community’s access to extraordinary medical care.”
“LCMC Health shares our commitment to delivering the highest level of personalized care,” said Gerald Parton, President and CEO of East Jefferson General Hospital. “We could not have asked for a more dedicated partner, as this deal will secure the future of this important community hospital.”
The acquisition enables East Jefferson General Hospital to continue delivering a high-level of care across a wide spectrum of primary and specialty services. Key elements of the partnership include preservation of the patient-to-trusted-doctor relationship that East Jefferson General Hospital currently enjoys close to home across a wide variety of services.
It will also help both organizations carry out their not-for-profit missions of treating every person in New Orleans and the surrounding parishes like family by providing them with access to the best possible healthcare.
Both EJGH and LCMC Health are preparing for the public education program that will precede the May 9 vote. It will consist of a series of public presentations as well as outreach to community business, civic and neighborhood associations. It will also feature a limited paid media component with television and radio commercials with the goal of reaching each voter household with educational materials that explain how the acquisition will work and describe the outcomes of passage or failure of the measure. Those include:
- Financial Strength: LCMC Health brings not only the financial strength of Children’s Hospital, Touro, New Orleans East Hospital, University Medical Center New Orleans and West Jefferson Medical Center to the table, but also each hospital’s own unique history and commitment to serving New Orleans and the surrounding parishes.
- Employees and Physicians: Bringing LCMC Health and East Jefferson General Hospital together will sustain the medical care that is provided, and there will be no immediate changes at either organization. EJGH’s talented team will also have access to increased mobility and opportunities within the LCMC Health family.
Patient & Community Benefits
- Continuity of Care: Bringing LCMC Health and East Jefferson General Hospital together means patients will continue to receive high quality healthcare. Patients can continue to see their regular care teams and physicians.
- Continued Services: There will be no immediate impacts to East Jefferson General Hospital’s care offerings and all services will continue.
About LCMC Health
Established in 2009, LCMC Health is a Louisiana-based, not-for-profit hospital system serving the healthcare needs of the Gulf Coast region. LCMC Health currently manages Children’s Hospital, Touro, New Orleans East Hospital, University Medical Center New Orleans and West Jefferson Medical Center.
About East Jefferson General Hospital
East Jefferson General Hospital is a publicly owned, not-for-profit community hospital with over 500 independent physicians on staff. This service district hospital, formed in 1965 and opened in 1971, receives no tax support from Jefferson Parish. The 420-bed hospital is accredited by the Joint Commission on Accreditation of Healthcare Organizations and is Louisiana’s first Nurse Magnet hospital. For more information on East Jefferson General Hospital, visit online at www.ejgh.org.