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West Jefferson Medical Center to Join LCMC Health System Investment to support healthcare in Jefferson Parish

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LCMC Health (LCMC) announced today that the Jefferson Parish Council approved a Cooperative Endeavor and a Master Lease Agreement (CEA) between LCMC Health and West Jefferson Medical Center (WJMC). Subject to closing conditions expected to be met over the next 60 to 90 days, LCMC Health will pay Jefferson Parish up to $245 million to lease WJMC and operate its hospital and clinics for 45 years with a portion of the consideration dependent on the hospital’s financial performance in the first three years.

The CEA also provides for an investment of $340 million for healthcare capital improvements in WJMC and in the Westbank community embodied by Jefferson Parish Hospital District No. 1 (District) which is to be invested over a 15-year period. LCMC will also provide community benefit payments of $3.15 million over the first four years for the benefit of the District and the residents of the parish. The parties have also agreed to continue their relationship through collaboration in the form of a partnership agreement to assess and monitor Westbank community health needs on an ongoing basis. The collaborative will be funded by a contribution of $150,000 from both LCMC Health and the District.

“We are appreciative of the Jefferson Parish Council’s leadership throughout the negotiation process and are grateful for the long-standing and unwavering support of WJMC’s employees, physicians, and board,” stated Gregory C. Feirn, CEO of LCMC Health. “Welcoming WJMC to our community-centered healthcare system strengthens and complements the healthcare services provided by LCMC Health and will provide a much needed sense of stability to all members of the WJMC team.”

As a member of LCMC Health, WJMC will continue to provide exceptional healthcare to the residents of Jefferson Parish. Patients will not experience any disruption in care during the transition into the LCMC Health system, and current physicians and employees will remain in place. Parish residents and physicians will have greater access to specialized care centers in the LCMC System, including the soon to be opened University Medical Center and the state’s only regional children’s hospital. Additionally, capital will be invested to enhance healthcare services within Jefferson Parish.

“The hospital board of directors appreciates the action taken today by the Jefferson Parish Council. The board expresses its deep gratitude to the employees of WJMC for their steadfast focus on the hospital’s mission throughout the partnership journey,” said WJMC Board Chairman Harry L. “Chip” Cahill. “The board also appreciates the tremendous support of the community in this endeavor.”

“Today is a great celebration for our WJMC family as we take a major step towards joining LCMC Health,” said Nancy Cassagne, CEO of WJMC. “Our patients, employees and volunteers are grateful to the leadership of Jefferson Parish for ensuring that WJMC is able to continue its legacy of care for decades to come. We look forward to increased collaboration with LCMC Health and its network of renowned hospitals.”

West Jefferson Medical Center serves a community of more than 180,000 people. Located near vast industrial corridors, WJMC also serves business and industry across the Gulf South. Clinical excellence divisions include neurosciences, cardiovascular services, and an academic community cancer center accredited by the Commission on Cancer of the American College of Surgeons. To meet community needs, West Jefferson Medical Center Physician Services includes both primary care and specialty clinics.

LCMC Health was selected as WJMC’s partner following a lengthy RFP and bidding process that began in 2012. WJMC joins LCMC Health’s community hospitals, which include Children’s Hospital, Touro, New Orleans East Hospital, Interim LSU Hospital and the new University Medical Center.