This Hospital Operator Will Now Manage N.O. East Hospital

by CSB Staff • November 16, 2013 • Healthcare, New Orleans East, Public Development • Comments (1) • 4459

In a move that solidifies its growing influence within the metropolitan hospital market, Louisiana Children’s Medical Center will take over the operation of the New Orleans East hospital under construction at the site of the former Pendleton Memorial Methodist Hospital.

Under the deal, announced Friday as a signed “letter of intent” with the city, Children’s will replace the Franciscan Missionaries of Our Lady of the Lake Health System, which originally had been selected to run the hospital.

If the deal is completed, the company will gain its fourth asset in the New Orleans area, moving it closer to what officials described as a goal of creating a metro-wide nonprofit system.

That strategy has been the underpinning of the ongoing bid by Children’s to lease Jefferson Parish’s two public hospitals, and it’s unclear how this new deal will influence that debate.

“We’re going to bring quality health care to New Orleans East,” Children’s President and Chief Operating Officer Greg Feirn said. “We’re going to bring some financial stability to make sure it’s a sustainable enterprise, be able to leverage some of our support services that will actually minimize the cost, and it’ll allow them to be part of LCMC, a nonprofit system here helping the community.”

The $130 million New Orleans East Hospital project includes renovating portions of the old hospital, which flooded during Hurricane Katrina, and building some new facilities. The project has been touted by city officials as necessary to provide for the health care needs of those living east of the Industrial Canal.

Read the full story at The Advocate.