Home » Health » Ochsner and LCMC’s Major Investment in LA Children’s Hospitals: A Landmark Healthcare Expansion

Ochsner and LCMC’s Major Investment in LA Children’s Hospitals: A Landmark Healthcare Expansion

New Orleans Children’s Hospitals: ochsner and LCMC Health in pediatric Care Competition

New Orleans is witnessing a importent battle for pediatric healthcare dominance as Ochsner Health and LCMC Health invest heavily in expanding their services. The rivalry intensified in late 2023 when Ochsner health received a substantial donation from Gayle Benson to fund a new children’s hospital on its Jefferson Parish campus. Just fourteen months later, LCMC Health responded by renaming Children’s Hospital New Orleans to Manning Family Children’s Hospital, supported by a “transformational” gift from the Manning family. this competition raises questions about the future of pediatric care in the region.

A Tale of Two Celebrations: Investments in Pediatric Care

The end of 2023 was a celebratory time for Ochsner Health,Louisiana’s largest healthcare system. A gathering on Ochsner Health’s Jefferson Parish campus included executives, business leaders, local politicians, and medical staff. Ochsner Health CEO Pete november described the event as marking an “unparalleled act of generosity” by Gayle Benson,owner of the Saints and Pelicans. The donation was specifically designated to fund a new, freestanding children’s hospital, signaling a major commitment to pediatric care in the region.

U.S. Rep. Troy Carter, Saints Owner Gayle Benson, Ochsner CEO Pete November
U.S. Rep. Troy Carter, Saints Owner Gayle Benson, Ochsner CEO Pete November, and others at the proclamation of the new Ochsner Children’s Hospital. (Photo courtesy Ochsner Health)

Shortly after, LCMC Health, Ochsner’s primary competitor in louisiana, hosted its own celebration leading up to the Super Bowl. Saints legend Archie Manning, his son eli, and other Manning family members joined LCMC officials. The event announced that Children’s Hospital New Orleans, a fixture in the Uptown neighborhood for 70 years, would be renamed Manning Family Children’s following a “transformational” financial gift.

Rivalry Intensifies: A Battle for Pediatric patients

These concurrent celebrations highlight the intensifying rivalry between the two non-profit children’s hospitals, both now backed by prominent New Orleans figures. Both institutions are making substantial investments in new facilities, spending hundreds of millions of dollars. Despite the celebratory atmosphere at public events, health system leaders acknowledge that the competition for pediatric care is growing fiercer.

The stakes are high as both hospitals aim to attract patients from Louisiana and beyond. These investments in state-of-the-art facilities and specialized care are designed to position each hospital as a leading center for pediatric medicine in the South. The competition is expected to drive innovation and improve the quality of care available to children in the region.

concerns and Competition: Collaboration vs. Individual Growth

LCMC leaders have expressed concerns regarding Ochsner’s plans for a new, five-story stand-alone facility. they argue that the region may not have enough patients to sustain two dedicated children’s hospitals. Furthermore, they suggest that Ochsner is primarily focusing on high-margin pediatric specialties, potentially neglecting other critical areas of pediatric care.

LCMC leaders have proposed a collaborative approach, suggesting that the two systems should have partnered to serve Louisiana’s sickest children and attract patients from across the South with specialty care. This debate underscores the tension between competition and collaboration in the healthcare sector. The question remains whether the two systems can find common ground to benefit the community.

Archie Manning and Eli Manning
Archie Manning and eli Manning at the announcement of the Manning Family Children’s Hospital. (Photo courtesy LCMC Health)

The future of pediatric care in New Orleans is being shaped by this intensifying competition between Ochsner Health and LCMC Health. as both systems continue to invest and expand, the ultimate beneficiaries will be the children and families who rely on their services. The coming years will reveal how this rivalry impacts the healthcare landscape in the region and the quality of care provided to its youngest residents. The focus remains on ensuring that all children have access to the best possible medical care.

New Orleans children’s Hospitals Face Off: Competition Heats Up Between Ochsner and LCMC

The healthcare scene in New Orleans is witnessing a surge in competition between Ochsner Health and LCMC Health, particularly in pediatric care. The presence of the Gayle and Tom Benson Ochsner Children’s Hospital and the Manning Family Children’s Hospital highlights this rivalry,raising questions about its impact on Louisiana families who depend on these institutions for complex pediatric cases. Will this competition ultimately benefit patients, or will it dilute the quality of care?

Manning Family Children's Hospital Announcement
Children’s hospital New orleans announced its renaming to Manning Family Children’s during their louisiana Legacy event at the NOW Pavillion in New Orleans, Wednesday, Feb. 5, 2025. The event honored the Manning Family. (STAFF PHOTO BY SOPHIA GERMER)

A central concern is that the growing competition could lead to fragmented resources and duplicated services. dr. Mark Kline, chief medical officer at Manning Family children’s, expressed this concern, stating, “Fragmentation and duplication dilute both institutions. This is a small and shrinking market. My concern is that neither institution will achieve what it would achieve or else if they worked together.”

Ochsner executives, though, have a different perspective. They argue that LCMC is overlooking their extensive experience in pediatrics. They view the Gayle and Tom Benson Ochsner Children’s Hospital as an expansion of an existing children’s “hospital within a hospital,” with the goal of reaching and assisting more children. Ochsner contends that they are striving to establish a regional destination for pediatric care, an endeavor they claim LCMC had decades to pursue but did not.

Dr. Vincent “Butch” adolph, regional medical director at Ochsner Children’s, believes that competition will ultimately lead to improved patient care. “If we’re in a constant battle to see who can be the best children’s hospital, then the patients will benefit,” said Adolph. “The expectation is that if we build better programs, people will choose to come here.”

Pete November and Reynold Verret
Pete november,CEO of Ochsner Health (right) chats with Reynold Verret,president of Xavier University (left) before a 2023 press conference in New Orleans. (Photo by Brett Duke, The Times-Picayune)

The outcome of this competition remains to be seen, but it is clear that the stakes are high for the families and children who depend on these hospitals for their healthcare needs. As both health systems continue to expand and vie for dominance in the region, the focus must remain on providing the best possible care for the children of Louisiana.

Ochsner and LCMC: A History of competition and Expansion in Louisiana Healthcare

The healthcare landscape in Louisiana has been considerably shaped by the growth and competition between two major players: Ochsner and LCMC. over the past two decades, both systems have expanded rapidly, vying to provide extensive care to patients across the region. This rivalry, however, is not new. Attempts to merge these entities date back to the late 1970s, revealing a complex history of collaboration attempts and competitive divergence.

The Rise of two Healthcare Giants

Ochsner and LCMC have become dominant forces in Louisiana’s healthcare sector. LCMC, under the leadership of CEO Greg Feirn, has transformed from a single children’s hospital in 2008 into an eight-hospital system. This expansive network employs more than 18,000 individuals and operates the University Medical Center in New Orleans.

LCMC Health CEO Greg Feirn
LCMC Health CEO Greg feirn

Ochsner, led by former CEO Warner Thomas and now under the direction of CEO November as 2022, has also experienced substantial growth. The system owns or operates hospitals from Shreveport to the Mississippi Gulf Coast, with children’s clinics extending into Jackson and Hattiesburg. Ochsner employs approximately 40,000 individuals.

Head-to-Head Competition in New Orleans

While Ochsner’s reach extends across a broader geographical area, LCMC stands as its primary competitor within the New Orleans metro area. The two systems have established a significant presence, with their clinics frequently situated in close proximity, symbolizing their ongoing rivalry. Every local hospital, with the exception of the VA, is now under the ownership or operation of either Ochsner or LCMC.

Failed Merger Attempts: A History of Discord

The competition between LCMC and Ochsner has intensified as both providers aim to offer comprehensive healthcare services. However, this rivalry has been a recurring theme, even amidst efforts to unite.

In the late 1970s, negotiations for a merger that would have placed the financially struggling children’s hospital under Ochsner’s control ultimately failed. Disagreements over the hospital’s location and the structure of the medical staff led to the deal’s collapse.

Doctors at Children’s felt so strongly against being bought out by ochsner that they all walked out of a staff meeting when the idea was proposed.

Dr. Jay Goldsmith, a 79-year-old neonatologist who has worked at both hospitals and was involved in the talks.

Dr. Jay Goldsmith, a 79-year-old neonatologist who has worked at both hospitals and was involved in the talks, recalled the strong opposition from doctors at Children’s, noting that Doctors at Children’s felt so strongly against being bought out by Ochsner that they all walked out of a staff meeting when the idea was proposed.

Another attempt at a merger occurred in the early 1990s,according to Dr.Keith Perrin, a retired pediatrician. However, differences regarding location, control, and financial matters once again prevented the two entities from merging.

Collaboration Opportunities missed

since Hurricane Katrina, the possibility of closer collaboration, especially in the realm of children’s care, has been discussed but never seriously pursued.

We had all these opportunities and kept dropping the ball.

Dr.Jay Goldsmith

Dr. Goldsmith lamented the missed opportunities, stating, We had all these opportunities and kept dropping the ball.

LCMC has as expanded beyond pediatrics, acquiring acute-care hospitals such as Touro, New Orleans East Hospital, and East Jefferson General. They also have long-term agreements to manage University Medical Center and West Jefferson Medical Center.Moreover, as of 2023, LCMC has an agreement with Our Lady of the Lake to operate their freestanding Children’s Hospital in Baton Rouge.

The dynamic between Ochsner and LCMC continues to shape the healthcare landscape in Louisiana. While past attempts at collaboration have faltered, the ongoing competition drives innovation and expansion, ultimately impacting the quality and accessibility of healthcare services for residents across the region.



New orleans Pediatric Care Faces crossroads as Ochsner and LCMC Vie for Dominance

A heated debate is unfolding in the New Orleans healthcare market as Ochsner Health introduces its new Gayle and Tom Benson Ochsner Children’s Hospital. This advancement has sparked concerns from LCMC Health, igniting discussions about the potential impact on the region’s pediatric care landscape. The central question revolves around whether the area can viably sustain two major children’s hospitals without compromising the quality of care. The competition between these healthcare giants is intensifying, raising questions about the long-term sustainability of pediatric services in the city.

Gayle and Tom benson Ochsner Children’s Hospital from Jefferson Highway.
A rendering of the Gayle and Tom Benson Ochsner Children’s Hospital from Jefferson Highway. Courtesy of Ochsner

Market Concerns and Intensified Competition

The unveiling of the Gayle and Tom Benson ochsner Children’s Hospital has amplified the existing rivalry with LCMC Health’s Manning Children’s hospital. This situation echoes challenges observed in other cities, such as Baltimore, where the University of Maryland and Johns Hopkins have historically competed for pediatric cardiac surgery patients. According to Dr. Scott Krugman, senior associate dean at the George Washington Regional Medical Campus at LifeBridge and a clinical professor at George Washington University, this level of competition can breed instability and compromise patient care.

If you’re a pediatric cardiac surgeon, you want to do a lot of cases, and you want to be doing pediatric cases. In Baltimore, there’s just not enough volume for both. So for months, we had nobody.

Dr. Scott Krugman, senior associate dean at the George Washington Regional medical Campus at LifeBridge and a clinical professor at George Washington University

Dr. Krugman’s insights highlight the critical importance of maintaining a sufficient patient volume to attract and retain highly skilled medical professionals. He noted that both programs in Baltimore experienced surgeon departures due to the lack of consistent cases, underscoring the need for a stable patient base to ensure the long-term viability of specialized pediatric services.

Ochsner’s perspective: Addressing Unmet Needs

Ochsner officials strongly disagree with LCMC’s concerns that the new hospital will negatively impact the market. Rob Woltermann, Ochsner’s Southshore CEO, asserts that their existing children’s hospital is busting at the seams and has been forced to turn patients away due to capacity constraints. While specific figures where not disclosed, woltermann suggested that Ochsner’s expansion might not have been necessary if Manning Children’s had evolved into a nationally recognized center for pediatric care, akin to renowned institutions in Cincinnati or Philadelphia.

If we had a Cincinnati Children’s here provided that we’ve had Children’s, I don’t think we would necessarily need to have two facilities.

Rob Woltermann, Ochsner’s Southshore CEO

Woltermann’s statement implies that Ochsner views its expansion as a necessary step to fill a void in the region’s pediatric care landscape, aiming to provide a higher level of specialized services that were previously lacking.

LCMC’s Counterpoint: A Regional Destination Already Exists

LCMC officials maintain that they have already established a regional destination for pediatric care, pointing to the hiring of 40 specialists in 2024 as evidence of their commitment to expanding and enhancing their services. They contend that Ochsner focuses primarily on a few high-margin specialties and does not offer the same comprehensive range and depth of services for sick children as Manning Children’s. Lou Fragoso, CEO of Manning Children’s, questioned the overall scope and capabilities of Ochsner’s program.

They’re a pediatric program, not a hospital. Just as you put ‘children’s hospital’ on a building doesn’t make you a children’s hospital.

Lou Fragoso, CEO of Manning Children’s

Fragoso’s remarks suggest that LCMC believes Ochsner’s new facility may not possess the full spectrum of resources and expertise required to function as a comprehensive children’s hospital, implying that LCMC’s Manning Children’s is better equipped to handle the diverse needs of pediatric patients in the region.

The Broader Context: Market Dynamics and Ancient Tensions

The current rivalry between Ochsner and LCMC is not occurring in a vacuum.The New orleans healthcare market has a history of competition and, at times, strained relationships between these two major players. Past attempts to merge the two organizations have failed due to disagreements over key issues such as location, control, and financial arrangements. These historical tensions add another layer of complexity to the current debate over pediatric care.

Furthermore, the evolving healthcare landscape, with its increasing emphasis on specialization and regionalization, is driving hospitals to seek strategic advantages and expand their market share. The investments being made by both Ochsner and LCMC reflect a broader trend toward consolidating resources and creating comprehensive healthcare systems that can attract patients from a wider geographic area.

Conclusion: An Uncertain Future for Pediatric Care in New Orleans

The debate surrounding the Gayle and Tom benson Ochsner Children’s Hospital highlights the intricate dynamics of the healthcare market in New Orleans. As both Ochsner and LCMC Health strive to provide comprehensive pediatric care, the ultimate impact on patient access, quality of service, and the long-term sustainability of both institutions remains uncertain. The coming years will be critical in determining whether New Orleans can successfully support two competing children’s hospitals, each vying to deliver extraordinary care to the region’s youngest patients. The focus must remain on ensuring that all children in Louisiana have access to the highest quality medical care, irrespective of which system they choose.

The situation in New Orleans serves as a case study for other cities facing similar challenges in balancing competition and collaboration in the provision of specialized healthcare services. The decisions made by Ochsner and LCMC in the coming years will have far-reaching consequences for the future of pediatric care in the region and may offer valuable lessons for other healthcare markets across the country.

Published:



New Orleans’ Pediatric Healthcare Showdown: An Expert Interview on Ochsner vs. LCMC

Is the burgeoning competition between Ochsner and LCMC Health in New Orleans’ pediatric care market a boon or a bane for the city’s children? The answer, as you’ll see, is far more nuanced than a simple yes or no.

Interviewer: Dr. Evelyn Reed, a leading healthcare economist specializing in competitive dynamics within the pediatric medical sector, welcome to World-Today-News.com. Thank you for joining us today.

Dr. Reed: Thank you for having me. It’s a pleasure to discuss this captivating and crucial progress in new Orleans’ healthcare landscape.

Interviewer: The recent investments by both Ochsner and LCMC, spurred by significant donations, have dramatically intensified the competition for pediatric patients. Can you unpack the implications of this rivalry for the long-term health of the New Orleans community?

Dr. Reed: The intensifying competition between Ochsner and LCMC for pediatric patients in New Orleans presents a complex scenario with both potential benefits and drawbacks. On one hand, increased investment translates into enhanced facilities, advanced technology, and recruitment of top pediatric specialists. This elevates the overall standard of pediatric care, ultimately benefiting children and families. However, the potential for resource duplication and fragmentation is a significant concern. The market might not be large enough to support two fully equipped, extensive children’s hospitals without impacting the financial stability of both institutions. A scenario where both systems struggle financially could inadvertently compromise access and quality of care. Thus, careful strategic planning and possibly even collaboration are vital.

Interviewer: LCMC has voiced concerns about Ochsner’s focus on high-margin pediatric specialties, potentially neglecting other crucial areas. How valid is this concern, and what are the broader implications of this potential disparity in service offerings?

Dr. Reed: LCMC’s concern about Ochsner’s potential focus on high-margin pediatric specialties is indeed valid and mirrors wider trends impacting healthcare systems globally. Prioritizing profitable procedures can lead to disparities in access for children requiring less lucrative but equally essential treatments. This imbalance can exacerbate existing health inequalities within communities, disproportionately affecting children from low-income families or those with less common diagnoses. The potential outcome is a two-tiered pediatric care system, leaving some children underserved. This could also lead to a skewed healthcare workforce – attracting specialists in profitable areas while potentially creating a shortage of professionals vital for treating less lucrative but crucial pediatric conditions.

Interviewer: Both sides highlight the importance of attracting specialists and patients from beyond Louisiana; how does this regional competition reshape the overall landscape of pediatric care across the Southern United States?

Dr. Reed: The competition between these two powerful healthcare organizations extends far beyond the New Orleans metro area. The focus on attracting specialists and patients from across the Southern U.S. is a key element of this. This creates a **regional

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.