VA-LSU Partnership Advances toward New Orleans Hospital

June 15, 2006

Teaching Hospitals, Trauma Centers in Downtown

BATON ROUGE – To provide state-of-the-art medical care for veterans in metropolitan New Orleans, the Department of Veterans Affairs (VA) and Louisiana State University (LSU) took a major step today toward creating a shared, VA-LSU medical complex in downtown.

“Both our institutions would benefit from savings and efficiencies by working together,” said the Honorable R. James Nicholson, Secretary of Veterans Affairs. “Most importantly, Louisiana veterans would receive world-class medical care in a modern, conveniently located site.”

Officials from VA announced today the results of an intensive four-month study of the feasibility of the two organizations collaborating on new medical facilities.  Both VA and LSU operated hospitals in New Orleans that were destroyed last year by the floods spawned by Hurricane Katrina.

“VA is committed to New Orleans and its future,” said Dr. Jonathan B. Perlin, VA’s under secretary for health. “This report shows that it is feasible for us to move ahead in partnership with LSU medical school, one of our nation’s finest schools of medicine.”

The recently released study recommended construction of two hospitals – one operated by VA, the other by LSU -- joined by a “linking corridor” that would contain services used by both.  Some potential areas for sharing include the energy plant, dietary and housekeeping services, as well as health care-related services such as radiology, rehabilitation and the laboratory.

The report projected a savings of $400 million during the next 30 years by the partnership.  Plans for the VA facility are still being developed.

Last year, VA spent nearly $1.3 billion to provide services for the state’s 360,000 veterans.  VA operates major hospitals in Alexandria and Shreveport, five community-based outpatient clinics, a nursing home in Alexandria and Vet Centers in Kenner and Shreveport.

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