East Jefferson General Hospital Sale
The Jefferson Parish Council has unanimously approved an agreement for LCMC Health to acquire East Jefferson General Hospital (EJGH). LCMC Health and EJGH recently reached a definitive agreement for LCMC Health to acquire the hospital, which 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 on Saturday, May 9, 2020.
Under the terms of the agreement, LCMC Health 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. The acquisition would allow East Jefferson General Hospital to pay off its current bonds, fully fund the employee pension plan 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.
CLICK HERE to watch the Jefferson Parish Council Special Meeting, which was held on Thursday, February 27, 2020.
CLICK HERE for a copy of the fairness opinion, which is an independent assessment of the fairness of the financial proposal.
CLICK HERE for a presentation from LCMC Health.
CLICK HERE for a press release with additional information.
CLICK HERE to view the Asset Purchase Agreement.
CLICK HERE to view State Bond Commission Approval.
Both EJGH and LCMC Health, as well as the Jefferson Parish Administration and Jefferson Parish Council, are preparing for the public education program that will precede the May 9 vote. It will consist of a series of public presentations as well as outreach to community business, civic and neighborhood associations. The goal is to reach each voter household with educational materials that explain how the acquisition will work and describe the outcomes of passage or failure of the measure.