This report summarizes our analysis of the Business Plan to rebuild the Medical Center of Louisiana New Orleans (MCLNO), which will operate as a non-profit corporation and will be named "University Medical Center" (UMC). Pursuant to a Memorandum of Understanding signed by LSU, the Louisiana Department of Health (DHH) and the state, and by Tulane University, when established, UMC:
- will operate as an Academic Medical Center (AMC),
- will be governed by an eleven member board of directors (the Corporation Board),
- will operate as a major affiliate of Louisiana State University and as part of the LSU system, and would serve as a teaching affiliate of Tulane University, and
- will have other university affiliations as approved by the Corporation Board.
To prepare the analysis, Verité Healthcare Consulting (VHC) developed financial projections for UMC under various scenarios. Together with Berkoff Facilities Strategies and Hogan & Hartson, LLP, VHC also reviewed and commented on plans for the UMC facilities and for UMC governance.
This report briefly describes the proposed project, presents financial projections for the medical center, describes the principal assumptions that underlie the projections, discusses findings from our review of the medical center's facilities plans, and concludes with observations regarding certain risks that may affect the project's success.