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Update on East New Orleans Medical Center
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After four years since Hurricane Katrina (2005) of planning, feasibility studies, and the lack of a full-service hospital serving New Orleans east, East New Orleans Medical Center (formerly Pendleton Memorial Methodist Hospital), is on-track to reopen. The Orleans Parish Hospital District has purchased the property with a $40 million down payment and securing an additional $120 million to $130 million to complete the project from Universal Health Services of Pennsylvania. The down payment was made available from federal block grant money from the City of New Orleans.
The Louisiana Legislature created the hospital district in 2006 in order to reopen the Methodist property as a community hospital, much like the governing model of East and West Jefferson Hospitals. Financing for the hospital are private investors using the bond market and unspent federal recovery grants controlled by the Louisiana Recovery Authority. Other sources of financing include the Gulf Opportunity zone bonds authorized by Congress after the hurricane season in 2005; federal hazard mitigation grants; the state Capital Outlay budget; and, conventional mortgage financing (Buy America Bonds), backed by the U.S. Department of Housing and Urban development created by the recent federal stimulus Bill.
The property includes the hospital, a 29-acre Lakeland Medical Pavilion, and the Lake Forest Ambulatory Surgical Center. The site has been maintained by the Methodist Hospital System Foundation by providing staff support, financing a feasibility study by Price Waterhouse Coopers, and continues to act as an adviser to the hospital district board.
East New Orleans Medical Center is planned to reopen as an 80-bed facility serving more than 80,000 people who have resettled in New Orleans east, the 9th Ward, and St. Bernard Parish. The Price Waterhouse Coopers feasibility report estimates that 50% of its patient base would have private (commercial ) insurance, 15% on Medicare, 13% on Medicaid, and 22% uninsured. Uninsured patients continue to be an economic drain on many of this areas private and public hospitals
The Orleans Parish Hospital District has signed an agreement in principal with Universal Health Systems of Pennsylvania. Financing has not been finalized and completion depends upon environmental assessments, bonding, loans, and other requirements of financing by federal Community Development Block grants. The hospital district is optimistic.
