New management ahead for Teche Regional
Starting in 2019, Teche Regional Medical Center in Morgan City will be under new management. Just who will do the managing isn’t clear yet.
The hospital is promising a transition “with no disruptions in care and no changes in how Teche Regional is contacted or accessed,” according to the press release.
Teche Regional said in a press release Wednesday that PHC-Morgan City L.P. and St. Mary Hospital Service District No. 2 have reached an agreement that would end the lease under which PHC-Morgan City has operated the hospital since 2005.
PHC-Morgan City is an affiliate of Tennessee-based LifePoint Health, which has announced it is pulling out of Louisiana.
PHC-Morgan City took over management of Teche Regional four years into a 40-year lease from the hospital district.
Breaking the lease could have resulted in damages “in the millions of dollars,” according to a statement to The Advocate from Nadia de la Houssaye, an attorney with Jones Walker who represents the hospital service district.
“Our primary concern is making sure that there is a smooth transition and that the citizens of St. Mary Parish are compensated for their damages that were incurred as a result of contractual breaches by LifePoint,” she said.
Wednesday’s announcement signals a settlement, although no financial terms were disclosed.
The agreement says that effective Dec. 31, “the operations and ownership of the hospital assets will transfer from PHC-Morgan City to the St. Mary Parish HSD or the owner of the HSD’s choice,” according to the news release.
“We are honored to have been part of the Morgan City community,” said Brad Owens, chief operating officer of LifePoint Health’s Western Group, which includes Teche Regional Medical Center. “We are proud of all we have accomplished with the Teche Regional team, and hopeful that a change in ownership will position the hospital well in the evolving healthcare environment. We are committed to ensuring a successful transition of Teche Regional to a new owner and wish its team all the best into the future.”
“We are pleased to have reached this agreement,” said Dr. Natchez “Trey” Morice of the St. Mary Parish HSD. “Our top priority is ensuring that our residents have access to the healthcare they need when and where they need it. We look forward to working with the Teche Regional team to explore ownership options to secure the long-term success of the hospital.”