Charity for Whom?
For almost 300 years, Charity Hospital served the people of New Orleans, providing accessible, quality health care, especially for underinsured and low-income patients.
Hurricane Katrina destroyed this beloved community institution. Ten years later, University Medical Center (UMC) opened with promises to carry on Charity Hospital’s mission as the city’s social safety net hospital.
However, UMC has not lived up to Charity’s legacy. According to UMC’s IRS Form 990 filings, UMC used no funds for charity care in fiscal years 2017, 2018, and 2019 that were not offset by outside revenue, meaning UMC’s percent of total expenses for charity care was zero. At each of the four LCMC Health hospitals where data is available, charity care has also been declining.
Overall, LCMC’s total cost of charity care only accounted for 0.82% of its total expenses, far below the national average of 2.6%.
Meanwhile, LCMC continues to benefit from its tax-exempt status. According to a recent analysis by the Lown Institute, UMC has a $29 million fair share deficit, the highest deficit of any hospital in New Orleans—meaning UMC receives far more in tax benefits than it spends on community investments. LCMC’s Children’s Hospital New Orleans ranks second, with a $19 million deficit.
Despite LCMC’s claims to honor the “Spirit of Charity,” it is clear LCMC has betrayed Charity Hospital’s legacy.
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