Jennings American Legion Hospital and Lafayette General Health have signed a letter of intent to explore a merger, Lafayette General announced today.
According to a release from Lafayette General, the plan is for Lafayette General to assume management and operations of the Jennings hospital. Under the proposed structure, Lafayette General will sign a multi-year lease of the hospital, its clinics, physical plant and equipment with the local American Legion Post.
The two hospitals began a clinical affiliation in 2016, enhancing economies of scale, sharing of best practices and clinical protocol alignment, the release states.
The structure and specifics of the lease/management agreement will be developed during a due diligence process over the next several months. The goal is to finalize documents in the fall of 2020 and execute the arrangement as early as October 1. More details of the merger will be provided as the parties near completion of a formal contract.
"The goal of this proposed relationship would be to help Jennings American Legion Hospital remain the hospital of choice in Jefferson Davis Parish, keeping residents close to home while receiving high quality medical services. (Lafayette General Health) will be able to provide expanded resources, technology, purchasing power and more access to services. This will enable (Jennings Ameican Legion Hospital) to deliver care more efficiently and cost-effectively, leading to enhanced patient outcomes, financial stability and long-term viability," the release states.
Lafayette General Health anticipates a $6 million investment in technology, infrastructure upgrades and integration as well as physician placement and recruitment. Additional investments for facility upgrades and capital planning are also in development as the two entities work toward a final agreement.
On September 25, Lafayette General Health announced it had signed a letter of intent to merge with Ochsner Health System. The long-term lease agreement between Lafayette General and the Jennings hospital would make it a subsidiary of Lafayette General Health. The Ochsner merger calls for a $365 million investment over 10 years and provides significant expansion of clinical services throughout all Lafayette General facilities, of which the Jennings hospital would be a part.
More information about the proposed merger can be found by visiting www.GrowingLocalCare.org.