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The Louisiana Department of Justice has granted final approval to LCMC Health’s purchase of three hospitals in Tulane, Louisiana from HCA Health Care for approximately $150 million.
The New Orleans-based nonprofit now boasts nine hospitals after acquiring Tulane Medical Center, Lakeview Regional Medical Center, and Tulane Lakeside Hospital from HCA.
As part of LCMC’s partnership with New Orleans-based Tulane University, LCMC is investing $220 million in newly acquired hospitals, focused on new facilities and equipment, and recruiting providers.
what is the impact
The news did not receive worldwide acclaim. In October, before the deal was finalized, National Nurses United asked Louisiana Attorney General Jeff Landry to intervene in the deal, stating that the merger would leave the New Orleans metropolitan area with only two health care systems, and NNU said it He said it could affect the quality of care.
In a letter to Landry, NNU said that the acquisition of LCMC “is against the public interest as it will lead to further consolidation, higher healthcare costs and the reduction of critical services.”
In the letter, NNU Southern Regional Director Bradley Van Wawth said LCMC’s market share in the region had increased to 55% and the Louisiana Department of Justice under the state’s Certificate of Public Interest (COPA) Act. It said it would be guaranteed “the most stringent scrutiny” by. Ensuring such agreements ensures that healthcare is accessible, affordable and of high quality.
The Federal Trade Commission has warned that COPA legislation often fails to provide adequate protection for communities facing hospital mergers. In its 2022 study, the FTC said:
The nurse argued that Louisiana was in line with the intent of the COPA regulation, and the Department of Justice said, “It is likely that the agreement could lead to lower health care costs or better access to health care.” Unless we decide, we may not issue a certificate.” Provide medical care or better quality care without unduly increasing health care costs. “
the bigger trend
Meanwhile, HCA Healthcare last year announced it would build five new full-service hospitals in Texas to meet the state’s growing population and healthcare needs. The new facility will complement the existing medical system’s presence in several rapidly growing communities across Texas, he said.
The Nashville-based for-profit healthcare system has invested approximately $6.6 billion over the past five years, including other ongoing expansions.
In June, the FTC filed an administrative complaint and lawsuit in federal court to block a proposed merger between HCA Healthcare and the Stewarded Healthcare System. The agency said the deal would eliminate He and Her fourth-largest health systems in the Wasatch Front area, home to about 80% of Utah’s residents.
HCA Healthcare has announced a definitive agreement to acquire Steward Healthcare’s five Utah hospital operations in September 2021. We also entered into an agreement to lease the related property from the owner after closing. These hospitals were to become part of his HCA Healthcare mountain division, which includes hospitals in Utah, Idaho and Alaska.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
