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Consulting Firm: Jefferson Parish Hospitals Should Seek Different Lease Partners

A Jefferson Parish consulting firm has recommended East Jefferson General Hospital in Metairie, La., and West Jefferson Medical Center in Marrero, La., pursue different lessees, according to a report from The Times-Picayune.

The boards overseeing East Jefferson and West Jefferson have failed to reach a consensus on which bidder to recommend to the Jefferson Parish Council, with the West Jefferson board favoring New Orleans-based Louisiana Children's Medical Center while all but one member of the East Jefferson board has voted for Nashville, Tenn.-based Hospital Corporation of America.

As of August, HCA had offered $575 million in lease payments over 30 years, and Children's had bid $410 million. Ochsner Health System in New Orleans also bid $374 million for the hospitals.

The council called on consulting firm Kaufman Hall & Associates to answer some questions about the issue. In its response, the firm stated the hospitals would have more success pursuing separate lease partners given their current dynamics, according to the report. Parties that enter into transactions with strong differences of opinion generally fail to achieve the objectives of the partnership, according to Kaufman.

Council Chairman Chris Roberts reacted negatively to the recommendation, according to the report. Mr. Roberts told The Times-Picayune the consulting firm has opposed different lease partners in a closed-door meeting with the council. In an email, he accused them of being "about as unpredictable as the weather in New Orleans."

Mr. Roberts has endorsed Children's as his pick for a lease partner. He and councilman Elton Lagasse — who also favors Children's — are the only council members who have publicly disclosed their preference.

More Articles on Jefferson Parish Hospitals:
Jefferson Parish Council Vote on Leasing Hospitals Canceled
HCA Outbidding Competitors for Jefferson Parish Hospitals
Louisiana Medical Center, HCA Final Options for Jefferson Merger

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