Financially troubled East Jefferson General Hospital's slow descent into a sea of red ink may finally be stopped.
Wednesday, the Board of the Hospital voted to approve a deal selling the facility for $90-million.
In addition, the New Orleans-based healthcare provider will commit to $100-million in capital improvements over the next five years.
According to the Times-Picayune/New Orleans Advocate, Jefferson Parish will not likely see any money from the purchase.
The money will be combined with the Hospital own reserves to settle the $135-million in debt and dedicate $50-million to fund the facility's pension plan.LCMC will take over the sprawling 420-bed hospital and all other assets connected with EJGH.
Dr. Donald Bell, The Hospital Board Chairman, stated last night, "East Jefferson General Hospital is not economically sustainable."
In urging the approval of the sale, Bell pushed to close the deal with LCMC or face foreclosure.
Hospital CEO Gerald Parton said selling EJGH would allow LCMC to upgrade the facility which is in need of improvements to it's physical plant, including plumbing, heating and air conditioning.
EJGH would also benefit from improved IT as it will be likely be merged with the LCMC information technology systems.
To complete the deal a number of steps are needed.
The Jefferson Parish Council will need to approve the purchase and decide if they have the people of East Jefferson Parish vote on a referendum.
Such a vote could take place during the May 9th election.
The deal still needs the approval of Attorney General Jeff Landry, the State Bond Commission, and the Federal Trade Commission.
LCMC already operates West Jefferson Medical Center, agreeing to a $245-million, 45-year lease in 2015. LCMC also committed to more than $300-million in improves to WJMC.