LCMC Health's purchase of three HCA hospitals upheld by court
LCMC investments include $220 million in clinical service lines that will transfer from Tulane Medical Center to East Jefferson General Hospital.
Photo: Peter Griffith/Getty Images
A federal judge has ruled in favor of Louisiana Children's Medical Center's purchase of three HCA hospitals.
In January, the Louisiana Department of Justice had given final approval for the New Orleans-based LCMC Health to purchase three Tulane University hospitals for a reported $150 million.
In April, the Federal Trade Commission sued to stop the merger until federal regulators could review the transaction. The FTC questioned the state's Certificate of Public Advantage (COPA) to ensure protections for communities faced with hospital mergers.
LCMC Health countersued with the support of Louisiana Attorney General Jeff Landry, who criticized the federal intervention.
On Wednesday, United States District Court Judge Lance M. Africk dismissed the FTC's claims with prejudice. The judge issued an order and reasons granting the motion for summary judgment filed by Louisiana Children's Medical Center, d/b/a LCMC Health, and HCA Healthcare, granting the motion for summary judgment filed by the State of Louisiana.
"We are pleased to announce that the District Court has recognized the value of our partnership with Tulane University and upheld the State of Louisiana's approval," LCMC Health CEO, Greg Feirn said in a statement. "Earlier this year, LCMC Health and the Attorney General Jeff Landry took a strong stance by taking legal action to safeguard this significant collaboration. This partnership underwent a thorough review and approval from the Louisiana Department of Justice, which has been validated by the court's decision."
WHY THIS MATTERS
LCMC Health said it would continue to move forward with its Tulane University partnership and integration plans, bringing world-class healthcare services and economic benefits to the Gulf South.
Benefits include expanded access to specialty care, advanced academic medicine, innovation and training and an emergency department at Tulane Medical Center, LCMC said.
Investments include $220 million to prepare for clinical service lines that will transfer from Tulane Medical Center to the expanded East Jefferson General Hospital campus.
LCMC assured that all employees at Lakeside Hospital, Lakeview Hospital and Tulane Medical Center would continue to have jobs under the new partnership as career opportunities, including nursing and healthcare professional pipeline programs, expand for current employees and future healthcare workers.
THE LARGER TREND
An April survey showed 70% of greater New Orleans residents expressed positive feelings about the LCMC Health and Tulane University partnership, LCMC said.
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Email the writer: SMorse@himss.org