NEW ORLEANS – At at meeting earlier this week, the Jefferson Parish Council unanimously approved an agreement for LCMC Health to acquire the financially struggling East Jefferson General Hospital. LCMC Health said in a press release that it has reached a definitive agreement with EJGH that 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.
LCMC Health said it 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. LCMC Health said the acquisition will 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.”
