NEW ORLEANS – On Sept. 27, the U.S. District Court of the Eastern District of Louisiana ruled in favor of LCMC Health’s purchase of three Tulane University-affiliated hospitals from HCA Healthcare. In 2022, the growing health system announced its plans to acquire Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital for $150 million.
The Federal Trade Commission expressed concerns about the deal and wanted to force the health system to apply for approval from federal regulars. LCMC got a green light for the acquisition and merger from the state attorney general’s office, and the health system sued the FTC in federal court to assert its ability to move forward with the integration.
LCMC plans to move doctors from Tulane Medical Center, which will be reborn as a teaching facility, to East Jefferson General Hospital and University Medical Center. The health system will maintain a freestanding emergency room onsite.
After the Sept. 27 decision from U.S. District Judge Judge Lance Africk, LCMC Health said it will continue to move forward with its partnership and integration plans.
“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,” said LCMC Health CEO Greg Feirn 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.”
LCMC Health said the deal will expand access to care and increase career opportunities. It plans to invest $220 million to prepare for clinical service lines that will transfer from Tulane Medical Center to the expanded East Jefferson General Hospital campus.
It’s possible the FTC could appeal Africk’s decision.
