East Jefferson General Hospital Physicians Favor HCA as Lease Partner

The primary governing group for independent physicians at East Jefferson General Hospital in Metairie, La., has endorsed Nashville, Tenn.-based Hospital Corporation of America as a lease partner, according to a report from The Times-Picayune.

John Lindsey, MD — the East Jefferson medical executive committee's chief of staff —gave HCA's $538 million upfront lease offer and its 160-hospital system made up mostly of community providers as reasons for the group's decision, according to the report.

The boards overseeing East Jefferson and West Jefferson Medical Center in Marrero, La., have failed to reach a consensus on which bidder to recommend to the Jefferson Parish Council as a lessee for both hospitals. The East Jefferson board, like its independent physician group, has voted for HCA, while the West Jefferson board members favor New Orleans-based Louisiana Children's Medical Center.

Children's President and COO Greg Feirn questioned the credibility of the East Jefferson medical executive committee endorsement absent a comprehensive hospital staff survey, according to the report. West Jefferson's medical executive committee members did not respond to a request for comment from The Times-Picayune Tuesday.

Children's 30-year lease offer is $132 million less than HCA's, according to the report. Still, council members have said the lease payment amounts won't necessarily be the main motivating factor behind their decision.

Last month, consulting firm Kaufman Hall & Associates stated the hospitals would have more success pursuing separate lease partners given their current dynamics, noting parties that enter into transactions with strong differences of opinion generally fail to achieve the objectives of the partnership.

However, Council Chairman Chris Roberts reacted negatively to the recommendation, saying the firm had opposed different lease partners in a closed-door meeting with the council. Mr. Roberts has publicly endorsed Children's as his pick for a partner.

More Articles on Jefferson Parish Hospitals:
Consulting Firm: Jefferson Parish Hospitals Should Seek Different Lease Partners
Jefferson Parish Council Vote on Leasing Hospitals Canceled
Louisiana Medical Center, HCA Final Options for Jefferson Merger