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Negotiations with Ochsner Health System to take over management of Teche Regional Medical Center were complicated by four years of losses totaling in the millions for outgoing management firm LifePoint Health, the head of the Hospital Service District No. 2 board said in a public letter.

But Ochsner’s performance after taking over other rural hospitals in Louisiana is encouraging, Chairman William Cefalu wrote.

“We were pleased to learn that in many markets Ochsner not only stabilized hospital operations, but had also successfully increased the hospital’s market share, added product lines and recruited medical staff to address gaps in various specialties,” Cefalu said.

The proposed lease agreement between Ochsner and Teche Regional is now awaiting review by the Louisiana Attorney General’s Office.

That office plans a public hearing on the proposed lease at noon Wednesday at the Emergency Operations Center.

Cefalu’s letter, posted on the internet by the district, included a copy of the 10-year-lease.

Ochsner would pay about $151,000 per year to the district and would be required to offer a list of mandatory services, including 24-hour emergency services, lab services, imaging, and primary care and physician clinic services.

Ochsner would also be required to install a $6 million EPIC electronic health records system.

Here’s the text of Cefalu’s letter:

Dear District Residents,
I am William Cefalu, M.D. and have the pleasure of serving as Chairman of the Board of the St. Mary Parish Hospital Service District (District) and as a Past Chief of Staff of Teche Regional Medical Center.
At this time, I am pleased to provide you with an update of the District’s efforts to secure a replacement operator for our Hospital and to provide you with a brief overview of the steps that led to the selection of Ochsner as the new lessee and operator of our essential community hospital asset. I also wanted to remind you that the Attorney General’s office will conduct a public hearing at noon on Wednesday in connection with the proposed lease agreement with Ochsner. For your information, a copy of the proposed lease is attached.
As you may know, last year LifePoint (which has leased the Hospital since 2001) announced its intention to terminate its relationship with the District. Also, LifePoint elected to leave the Louisiana market completely and has now terminated all of its other operations with the exception of our Morgan City facility. LifePoint experienced losses of multiple millions of dollars over the past four years while operating our Morgan City facility which we believe significantly contributed to its decision to leave.
When confronted with LifePoint’s decision, the District’s Board decided to focus its attention on selecting a replacement tenant/operator for the District’s Hospital facilities. A key criteria in that selection process focused on obtaining an operator from Louisiana with a proven track record of successfully operating rural hospitals in Louisiana. This was especially important given the enormous number of closures of rural hospitals throughout the United States over the last ten years. In fact, more than 120 rural hospitals have closed in the US since 2005. After discussing a potential lease of the District’s facilities with other not for profit systems operating in Louisiana, the District selected Ochsner. The decision to select Ochsner was based upon our due diligence which documented Ochsner’s success in public private partnerships, including those for rural hospitals. We were pleased to learn that in many markets Ochsner not only stabilized hospital operations, but had also successfully increased the hospital’s market share, added product lines and recruited medical staff to address gaps in various specialties.
The lease negotiations with Ochsner were protracted and challenging, given the significant financial challenges that LifePoint had experienced in operating Teche Medical Center. After months of negotiations, the District and Ochsner reached an agreement on a long-term lease agreement that the District has concluded provides the best opportunity to ensure the viability of our Hospital including its all-important 24-hour seven day a week emergency department.
The key elements of the lease agreement are as follows:
A. The lease is with a subsidiary of Ochsner and is structured in accordance with Louisiana law governing Hospital Service Districts.
B. It includes a 10-year initial term, with automatic successive 5-year renewal terms and a requirement for 365-day notice of termination.
C. The District’s CPA was engaged to prepare detailed calculations of the rental amount in accordance with Section 1074 of the Hospital Service District Law this process established the rent as $150,557.00/year. This is a substantial increase over the amount which was generated by the lease payments under the current lease with LifePoint which has generated no lease payments over the last four years.
D. Ochsner will make necessary repairs, up to $200,000 per year.
E. Ochsner will install the premier state of the art EPIC electronic health record system at the estimated cost of $6,000,000 and additionally provide an additional capital investment of $250,000 per year.
F. Ochsner will provide insurance as is typical is such transactions.
G. An advisory board which will include four appointees from Ochsner and four appointees from the District will be established and will meet quarterly to provide input to Ochsner. Ochsner will have its own hospital governing body.
H. While the District only serves as Ochsner’s landlord we did secure in our negotiations significant legal obligations on Ochsner’s part with respect to service lines to be offered at the hospital during the term of the lease. The Lease lists Mandatory and Additional Uses:
I. Mandatory Uses are:
—The provision of 24-Hour Emergency Services within an Emergency Department
—Laboratory Services
—Imaging Services
—Primary Care and Physician Clinic Services
J. Additional Uses are:
—Endoscopy and Other Ambulatory/Outpatient Surgical Services
—Surgical Services: Gen-eral; Gynecological; Oph-thalmic; Orthopedic
—Inpatient Behavioral Health
—Inpatient Medi-cine/Surgical Care and Pro-gressive Care Unit
—Obstetrical and Newborn Services
—Pediatric Services
—Rehabilitation Services: Inpatient Physical Therapy; Occupational Therapy; Speech Therapy
If certain Additional Uses cannot be delivered without adequate funding made available to Ochsner to cover its overall financial losses from hospital operations, then the District shall have the right to notify Ochsner that it wishes Ochsner to continue providing particular Additional Uses but the District must subsidize Ochsner’s financial losses from the provision of such Additional Uses. Alternatively, the District, at its sole option, can terminate the lease.
We are convinced that the Lease Agreement best posi-tions the Hospital to remain viable and to enhance access to care for our community. At both St. Anne General Hospital in Raceland and at St. Charles General in Luling, Ochsner’s efforts have resulted in significant growth in both the size of the medical staff and in the service lines. Similarly, we expect the same from Ochsner’s involvement here. I look forward to wel-coming Ochsner into Morgan City and to the growth and stability it will bring. Please join with me in supporting our new partnership with Ochsner.
Sincerely,
William A. Cefalu, Jr., M.D., Chairperson
HOSPITAL SERVICE DISTRICT NO 2 OF THE PARISH OF ST. MARY

A Centerville man ran from the Morgan City jail, but officers chased and caught him before he got very far, Morgan City Police Chief James F. Blair said in a news release.
—Alton Michael Kemp Jr., 32, of Verdun Lane in Centerville, was arrested at 1:47 p.m. Thursday on a charge of simple escape. Kemp Jr. was being processed for release to another agency on an active warrant when he ran from the jail facility with officers pursuing him, Blair said. He was captured within a short distance of Morgan City Police Department. He was jailed.
Blair also reported that the Morgan City Police Department responded to 56 calls of service and the following arrests were made:
—Sally Scott, 42, of Aucoin Street in Morgan City, was arrested at 8:08 a.m. Thursday on a warrant for a charge of failure to appear. Scott was located at a residence on Aucoin Street and placed under arrest on an active warrant held by City Court of Morgan City. She was jailed.
—Oscar Quintanilla Elizondo, 33, of Victor II Boulevard in Morgan City, was arrested at 10:37 a.m. Thursday on charges of window tint violation, driving under suspension, possession of a Schedule I controlled dangerous substance (THC oil), possession of a Schedule II controlled dangerous substance (methamphetamine) and possession of drug paraphernalia and on warrants for two counts failure to appear.
An officer on patrol observed a traffic violation in the area of Martin Luther King Boulevard. A traffic stop was conducted and the driver was identified as Elizondo. A computer check revealed his driver’s license was under suspension. During the traffic stop, K-9 Dally was called to the scene to assist in the investigation. K-9 Dally alerted to the presence of illegal narcotics in the vehicle. Officers located suspected methamphetamine, THC oil, and drug paraphernalia, Blair said. A warrant check revealed the 16th District Court held active warrants for his arrest. He was jailed.
—Earl Simmons, 27, of Third Street in New Orleans, was arrested at 8:22 p.m. Thursday on charges of disturbing the peace intoxicated, resisting an officer,= and domestic abuse battery. Officers were called to a local business on La. 70 about a domestic disturbance. When officers arrived, they came into contact with the victim and Simmons. The officer learned that the victim and Simmons were in a dating relationship. Officers observed Simmons was in an intoxicated condition and learned he had committed a battery on the victim, Blair said.
The officer observed signs that were consistent with a battery on the victim. When the officers attempted to arrest Simmons, he began to resist by pulling away from the officers. He was eventually placed in handcuffs. He was jailed.
St. Mary Parish Sheriff Blaise Smith advised that the Sheriff’s Office responded to 27 complaints and the following arrests were made:
—Jeanne Marie Pisani, 61, of La. 182 in Morgan City, was arrested at 12:57 p.m. Thursday on a felony charge of probation violation and on a warrant for failure to appear on the charge of distribution of suboxone. She was transported to the St. Mary Parish Law Enforcement Center from another agency on an active warrant. She was jailed with no bail set.
—Conley Thomas Jones, 70, of Joseph Street in Morgan City, was arrested at 12:27 a.m. Friday on a charge of possession of drug paraphernalia. A deputy was patrolling the area of Joseph Street in Morgan City when he observed a male subject, later identified as Jones, walking in a dimly lit area. The deputy conducted a welfare stop and during the investigation, drug paraphernalia was located on his person. Jones was arrested and released on a summons to appear in court on Nov. 8.
—Jason Matthews, 37, of Friendship Alley in Amelia, was arrested at 1:21 a.m. Friday on a warrant for failure to appear on the charge of criminal neglect of family.
—Ricky David Pillaro, 63, of First Street in Morgan City, was arrested at 1:21 a.m. Friday on a charge of possession of methamphetamine.
Deputies were patrolling the area of La. 182 West in Morgan City when they observed a vehicle cross the centerline. The deputies conducted a traffic stop and made contact with the driver, Mathews, and a passenger, Pillaro. Through the stop, drugs belonging to Pillaro were found. The deputies learned that Matthews held an active warrant for his arrest. Both were jailed. Bail has been set on Matthews at $13,370.91. No bail has been set on Pillaro.
Patterson Police Chief Garrett Grogan reported there were no arrests.
Berwick Police Chief David Leonard Sr. reported there were no arrests.

According to the Louisiana Department of Transportation and Development, the closure of the Oaklawn Bridge over Bayou Teche between La. 87 and Irish Bend Road in St. Mary Parish has been extended until Sunday, May 31, 2020, weather permitting.
The bridge has been in the process of being replaced for about year now.
No oversized or permit loads will be permitted during this closure. The detour will consist of La. 87, La. 182 and La. 322.
DOTD reminds motorists to please drive with caution and be on the lookout for work crews and their equipment.

KWBJ reported Monday that Louisiana State Police Troop I arrested murder suspect, 36-year-old Trinity Daqwan Coleman of Franklin, in Jefferson Davis Parish.
Coleman had been involved in a high-speed pursuit and shoot-out following the homicide of a female victim in the area of Scottie Street near Pine, in Franklin, around 8:50 a.m. on Monday.
Franklin Police Chief Morris Beverly reportedly said that Coleman and the 37-year-old victim had been involved in “an on-again-off-again relationship.”
During a BOLO-prompted traffic stop later that morning of Coleman’s silver Cadillac CTS on I-10 near Crowley in Acadia Parish, Coleman allegedly refused to exit the car.
KWBJ reported that Coleman then drove off and began traveling west on I-10 resulting in a pursuit. The pursuit reached speeds in excess of 100 mph.
As the Cadillac entered Jefferson Davis Parish, Troopers successfully deployed spike strips causing the tires to deflate, yet Coleman still refused to stop.
According to KWBJ, after a few minutes, Coleman pulled his vehicle onto the shoulder of I-10 in Welsh where he began to exchange gunfire with the driver of another vehicle, identified as 57-year-old Clarence Fine Jr. of Jeanerette, who was stopped in the westbound lanes of travel. No one was reportedly struck in the exchange of gunfire.
Coleman is then said to have continued traveling west on I-10, coming to a stop on the roadway about three miles west of Welsh and still refused to exit the vehicle.
After a two-and-a-half hour standoff, Coleman surrendered and was taken into custody.
Coleman was arrested and booked into the Jefferson Davis Parish Jail for attempted second degree murder and illegal discharge of a weapon, with additional charges possible.
Fine was arrested and booked into the Jefferson Davis Parish Jail for attempted second degree murder and illegal discharge of a weapon.
The homicide investigation in Franklin remains on-going.