Tuesday, September 20, 2016 - LCMC Health, UMC New Orleans Reach New Agreement with Edwards Administration

Today, LCMC Health announced an agreement with Governor John Bel Edwards’ Administration on renegotiated terms of the public-private partnership for University Medical Center New Orleans (UMC), home of the Reverend Avery C. Alexander Academic Research Hospital.

The Memorandum of Understanding (MOU) signed by Commissioner of Administration Jay Dardenne, LSU President King Alexander, LCMC Health CEO Greg Feirn, and UMC CEO Bill Masterton makes mutually agreed upon changes to the Cooperative Endeavor Agreement (CEA) which previously governed the public-private partnership for UMC.

“I am incredibly proud of the agreement we have reached with LCMC Health and the University Medical Center New Orleans,” said Gov. John Bel Edwards. “I set out to negotiate a new arrangement that was more practical for the state of Louisiana while still providing the people of New Orleans the best healthcare possible. This new agreement exemplifies the strength of our partnerships and the mutual return on investment that will ultimately benefit Louisiana taxpayers, and I thank them for their commitment to the people of New Orleans."

This agreement reflects a mutual commitment from the State and LCMC Health to the continued success of UMC and fulfilling its mission of enhancing the health of our communities by delivering high-quality healthcare services. The MOU, effective September 1, 2016, through June 30, 2017, updates several key provisions of the original agreement, focusing on creating a high-quality healthcare system focused on access and efficiency:

  • Full funding for UMC in State Fiscal Year 2017;
  • A  strong partnership between LCMC Health and LSU in the provision of graduate medical education;
  • A continued commitment between LCMC Health and the Louisiana Department of Health to improve health outcomes and reduce health care costs through the analysis of data metrics;
  • The development of a business plan designed to expand capacity and services at the hospital, particularly in mental health services; and
  • Continuing to operate in the most efficient manner possible.

“Throughout this process, the Governor and his team have acknowledged that LCMC Health is a great partner to the State and that this partnership is working extremely well,” said Greg Feirn, CEO of LCMC Health. “This MOU solidifies that partnership and demonstrates that we are working collaboratively to make changes that benefit all parties as we advance the future of UMC. These new terms are a win-win for LCMC Health and for the State and we appreciate the joint effort.”

“This MOU memorializes our close alignment with the State and allows us to move forward with our mission of providing exceptional patient-centered care and a world-class academic experience,” said Bill Masterton, President and CEO of UMC New Orleans.

UMC marked its first anniversary on August 1, 2016. In its first year of operation, UMC significantly contributed to the positive economic development, academic training and access to quality healthcare for our community. To learn more about the successes of this public-private partnership, visit


About University Medical Center New Orleans

Opened in August 2015, University Medical Center New Orleans, home of the Rev. Avery C. Alexander Academic Research Hospital, is the academic medical center of LCMC Health, a Louisiana-based, not-for-profit health system. UMC New Orleans serves as a key partner of LSU Health Science Center New Orleans, Tulane University School of Medicine and other academic institutions. For additional information about UMC New Orleans, visit 

About LCMC Health

Established in 2009, LCMC Health is a Louisiana-based, not-for-profit hospital system serving the healthcare needs of the Gulf Coast region. LCMC Health currently manages community hospitals including Children’s Hospital, Touro, New Orleans East Hospital, University Medical Center New Orleans and West Jefferson Medical Center. For additional information about LCMC Health or its hospitals, please visit

Our Partners


The Louisiana State University Health Sciences Center New Orleans has teaching, research, and health care functions state-wide, through its six professional schools and twelve Centers of Excellence, as well as the more than one hundred hospitals and other health science related institutions with which they maintain affiliations.


The second-oldest medical school in the Deep South and the 15th oldest medical school in the United States, Tulane School of Medicine is equipping the next generation of medical professionals with the tools to succeed in a rapidly changing world and shape the future of health care.