NEW ORLEANS — LCMC Health is suing the U.S. Attorney General after the FTC ordered a halt to the nonprofit's $150 million purchase of three Tulane hospitals, according to our partners at NOLA.com.
The sale was halted so that regulators can review the deal for potential violations of federal anti-trust law, according to the suit.
The purchase would have transferred ownership of Tulane University Medical Center downtown, Tulane Lakeside Hospital in Metairie and Lakeview Regional Medical Center in Covington to LCMC.
It would have also relocated the majority of Tulane's medical residents and patients to East Jefferson General Hospital in Metairie.
LCMC asked the court to let the deal go forward and claimed that the FTC's actions "constitute a significant violation of federal law and Louisiana’s sovereignty. Left unchecked, this agency overreach would not only offend important principles of federalism, but also harm the people of Louisiana who are well-served by the Acquisition."
NOLA.com said that Tulane did not immediately respond to a request for comment.
LCMC said in a statement: "We are on solid ground and Louisiana knows what is best for our community. We are steadfast in our commitment to delivering health, care, and education beyond extraordinary for all, and continuing to deliver the benefits of the partnership for our patients and community."
Louisiana Attorney General Jeff Landry also released a statement: "It is troubling that... the federal government is now trying to impose its will on an agreement that received tremendous support from the community."
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