NEW ORLEANS -- Two hospital groups, LCMC Health and Ochsner, were looking to seek a partnership with East Jefferson General Hospital in Metairie, however Ochsner is now out of the running.
Jefferson Parish officials confirmed earlier Tuesday that both were among the four companies looking at a possible deal to lease EJGH, however, Tuesday around 7 p.m., the hospital system told WWL-TV that Ochsner was no longer seeking a partnership with them at this time.
“We recognize East Jefferson General Hospital (EJGH) is an important asset to the community. While we will not be pursuing a potential partnership at this time, we wish them success in their search for a suitable partner who aligns with their vision and fits their needs,” Ochsner said in a statement.
It is not clear why Ochsner will not be moving forward with the partnership, however Jefferson Parish Councilman Chris Roberts told WWL-TV earlier Tuesday that both Ochsner and LCMC were two of the four companies in discussions with EJGH.
"I would say that discussions are occurring with both LCMC and Ochsner," Roberts said at the time. "The council will be further briefed as those discussions are further along. I know that there are meetings that are planned for this week."
Last week, the parish-owned East Jefferson ended lease negotiations with University Healthcare System, a partnership between Tulane University and Nashville-based HCA Healthcare.
Councilman Roberts was briefed on the matter and confirms the HCA board pulled the plug.
"East Jefferson acted in good faith for the last year and I think the local individuals with HCA acted in good faith for the last year, but they were overruled out of main office and I think it caught a lot of people off guard," Roberts said.
East Jefferson is seeking a private partnership because it can no longer survive financially as a stand alone hospital.
As WWL-TV first reported, the public hospital lost $31.3 million over the past two years.
It also owes its bondholders about $137 million.
According to Roberts, EJGH still has more than $100 million in reserves and is now prepared to sell off some non-revenue assets such as property and vacant buildings.
"So, they still have some time," Roberts said. "We're by no way in a crisis mode where people who work there or patients for that matter should be concerned."
WWL-TV reached out to both Ochsner and LCMC Health about their interest in partnering with East Jefferson.
LCMC Health CEO Greg Feirn said, "East Jefferson General Hospital is important to the community and LCMC Health will continue to work collaboratively with the hospital."
We still don't know the names of the other two companies now talking with the hospital.
Paul Murphy can be reached at pmurphy@wwltv.com.