University Medical Center operator might leave hospital over Louisiana budget impasse

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LCMC Health informed Gov. John Bel Edwards‘ administration Monday (March 12) that it will walk away from running University Medical Center in New Orleans on July 1 if the state doesn’t drastically change its budget situation.

If LCMC pulls out, it could cost the state hundreds of millions of dollars and the University Medical Center’s billion-dollar facility would suddenly become the state’s responsibility to maintain, according to NOLA.com

More than 2,000 people who work for the hospital would have their jobs put in jeopardy, and it would be unclear how 1,000 medical residents and 2,400 other health care students would receive training next year. Both LSU and Tulane’s medical schools would be affected. 

Hospital operators in Baton Rouge, Lafayette and Lake Charles have sent Dardenne similar letters indicating that they will walk away from their own hospital deals if the budget crisis isn’t resolved.

Gregory Feirn, head of LCMC Health, and William Masterton, head of University Medical Center, sent a letter to Commissioner of Administration Jay Dardenne, Edwards’ budget chief, giving official notice that they are considering a “potential withdrawal event” regarding their contract with the state to run the hospital.

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