The long-awaited sale of East Jefferson General Hospital closed overnight, officials said Thursday.
The closing, which happened at midnight, brings to an end 50 years of public hospital presence on the east bank of Jefferson Parish.
The sale also takes the struggling 420-bed Metairie facility off the parish’s hands and gives it a path forward to solvency. In recent years, as EJGH struggled to keep up with larger networks in the New Orleans market, it bled cash and saw its bonds downgraded to near junk status.
“East Jefferson General Hospital becoming part of the LCMC Health family ensures the residents of Jefferson Parish will continue to receive high-quality health care,” said Greg Feirn, LCMC Health CEO. “Receiving the overwhelming approval of the voters was a testament to East Jefferson’s commitment to the well-being of our community and we look forward to all we accomplish together in the years to come.”
LCMC Health to spend $90 million paying debt, funding pensions, plus $100 million on improvements
Per the terms of the deal, LCMC will pay $90 million, which will be combined with existing hospital reserves to pay off nearly $180 million in bonds and other debts and also fully fund the hospital’s pension, which is pegged at costing about $50 million. LCMC has also committed to spending $100 million in capital improvements over the next five years.
The deal won overwhelming support from the Parish Council and the hospital board. East bank voters blessed the deal with a staggering 95% support rate in the Aug. 15 election.
“East Jefferson General Hospital will continue to bring an unmatched level of health care to the residents of Jefferson Parish, now with the support of a large, locally-operated hospital system,” said Gerald Parton, EJGH president and CEO. “This partnership ensures the continuation of our legacy and the retention of thousands of jobs for some of the finest health care workers in the region.”
East Jefferson will join the LCMC network, which includes Children’s Hospital, Touro, University Medical Center, New Orleans East Hospital and West Jefferson Medical Center, which it leases from the parish.
Employees and patients should see no changes in care, officials have said.
With resounding voter approval this weekend for their purchase of East Jefferson General Hospital, LCMC Health officials now face the task of …
Gerald Parton, who took over a struggling East Jefferson General Hospital in 2017 with the goal of finding a private operator to take over the…