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 (University Medical Center), 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 University Medical Center CEO Bill Masterton makes mutually agreed upon changes to the Cooperative Endeavor Agreement (CEA) which previously governed the public-private partnership for University Medical Center.
“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 University Medical Center 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 University Medical Center 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 University Medical Center. 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 University Medical Center New Orleans.
University Medical Center marked its first anniversary on August 1, 2016. In its first year of operation, University Medical Center significantly contributed to the positive economic development, academic training and access to quality healthcare for our community.