– The Board of Trustees of Lafayette General Health and Ochsner Health System have signed a letter of intent for Lafayette General to merge with Ochsner Health System.
– Ochsner will invest $365 million in capital and resources in Acadiana over the next 10 years.
– A 10-year, $10 million Community Support Fund overseen by the Lafayette General Board will be created to advance health and wellness in Acadiana.
– $1 million will be invested in the Healthcare Innovation Fund at the Lafayette General Health Foundation to further digital medicine and technology initiatives in Acadiana.
The Board of Trustees of Lafayette General Health and Ochsner Health System announced they have signed a letter of intent for Lafayette General to merge with Ochsner Health System. The merger builds on the clinical affiliation between the two health systems and the combined organization will be the largest and most comprehensive healthcare provider in the Gulf South, enabling them to improve access to high-quality healthcare across the region.
Impact of Letter of Intent
Signing the letter of intent to merge with Ochsner Health System is the first step in a process that will take several months to complete. Both organizations will now enter into a period of due diligence and seek required regulatory approvals. The merger is expected to be finalized in the spring of 2020.
“The reality is that the healthcare industry is fundamentally changing and creating challenges for healthcare providers – especially health systems of our size,” said Lafayette General Health President David L. Callecod, FACHE. “Now is the time to make proactive decisions to fulfill our mission and allow us to thrive well into the future. We are proud to be Acadiana’s trusted healthcare provider, and in partnership with Ochsner, we will be better positioned to ensure access to local, quality care for generations to come.”
Here are seven things to know about the commitments that are apart of the letter of intent to merge:
1. Lafayette General will anchor services as the regional healthcare hub in Southwest Louisiana for the statewide health system, and Ochsner will invest $365M in capital and resources in Acadiana over the next 10 years.
2. The system will invest more than $50M in expanding key services including pediatrics, women’s health, cancer services and more, as well as introduce pioneering behavioral health services the community desperately needs.
3. A 10-year, $10 million Community Support Fund overseen by the Lafayette General Board will be created to advance health and wellness in Acadiana.
4. $1 million will be invested in the Healthcare Innovation Fund at the Lafayette General Health Foundation to further digital medicine and technology initiatives in Acadiana.
5. The system will add approximately 48 residency positions at the medical center, building on the 75 positions currently at University Hospital & Clinics and LGMC.
6. All current Lafayette General employees will continue with the combined organization, and minimum pay will increase by nearly $2 to $12 per hour across the system, impacting 800 employees.
7. Lafayette General will maintain an open medical staff, allowing physicians to choose how they affiliate with the health system.
