LCMC Health has acquired three HCA Healthcare-owned hospitals in southeast Louisiana for $150 million following state regulatory approval, the nonprofit system said Tuesday.
Tulane Medical Center, Tulane Lakeside Hospital, and Lakeview Regional Medical Center are part of the LCMC in New Orleans and went non-profit as a result of the transaction. About 1,900 employees at the facilities will continue to have jobs in addition to “new and expanded opportunities for growth and promotion,” according to a press release. LCMC has agreed to invest $220 million over five years in these three properties.
HCA purchased Tulane Medical Center in 1995 and merged its Lakeside Hospital ten years later to form the Tulane Health System. Lakeview Regional joined the system in 2017.
A larger partnership announced in October between LCMC and Tulane University will focus on specialized care, academic medicine, innovation, and learning in southeast Louisiana. Tulane will integrate its facilities with LCMC over the next two years. During this time, Tulane Medical Center will move most of its services to East Jefferson General Hospital and University Medical Center New Orleans.
The current Tulane Medical building will house the new nursing program, clinical research, and educational space. Tulane University has agreed to invest about $600 million in downtown New Orleans, a project that also includes the restoration of the Charity Hospital building.
“I cannot overstate how important this partnership will be to improve healthcare and drive medical research in our community,” Tulane President Michael Fitts said in a press release.
The partnership drew some backlash from nurses, including members of National Nurses United, who wondered how it would impact patient care and health care costs in the region. The deal leaves only two healthcare providers in the area – LCMC and Ochsner Health.