New report detailing LCMC’s finances shows high charges for care and excessive executive pay

Former U.S. Labor Secretary Julie Su set to join picket line as nurses strike for retention continues at University Medical Center

A new report from National Nurses Organizing Committee/National Nurses United (NNOC/NNU), the union representing nurses at University Medical Center New Orleans (UMCNO), details disturbing business and financial practices from LCMC Health, the hospital's owner and operator.

The report's release comes on day two of a three-day strike by UMCNO nurses, who are seeking measures for staff retention while negotiating their first union contract. Nurses and allies will rally at 9 a.m. on Wednesday, Nov. 12, to discuss the new report and its findings. The report is available here.

Who: UMCNO nurses, community, and allies
What: Press conference on new report as nurses strike continues
When: Wednesday, Nov. 12, 9 a.m.
Where: University Medical Center New Orleans, 2000 Canal St., New Orleans, La.; at the corner of Canal and Galvez

"This report shows how LCMC overcharges our community for care while paying out their executives," said Shonda Franklin, RN in the float pool at UMCNO. "Executives are being paid millions while we have a revolving door of new staff in our hospital. In order to retain hospital staff, we need to see LCMC invest in our hospital so we can retain staff, including nurses and everyone else who works at our hospital."

Nurses will be joined at Wednesday's 9 a.m. rally by former U.S. Secretary of Labor Julie Su.

"I stand with UMC nurses in their continued fight for nurse retention," said Su. "Their critical, compassionate, expert work keeps New Orleans healthy, and they deserve to be valued."

Also joining will be attendees in New Orleans for EARNCon, a conference hosted by the Economic Analysis and Research Network (EARN), part of the Economic Policy Institute (EPI).

"We jumped at the chance to stand in solidarity with UMC nurses this week while holding our annual conference in New Orleans," said Jennifer Sherer, EPI's Deputy Director of State Policy and Research. "We applaud UMC nurses for their fight for nurse retention, which will help create a stronger healthcare system and more equitable economy."

Included in the report are extensive findings on LCMC's role in the broader New Orleans health care affordability crisis. Using a measure called charge-to-cost ratio, the research indicates that LCMC leads New Orleans providers in how much it charges for services relative to the cost of providing those services. LCMC's charges are equivalent to 576 percent of the costs for those services, making its charge-to-cost ratio the highest in the region and, on average, 41 percent higher than the Ochsner hospitals in the New Orleans area.

Additionally, the report includes details on LCMC executive pay, finding that, since 2013, executive pay has been equivalent to 41 percent of LCMC's net income. Meanwhile, nurses are striking to make UMCNO a place that can retain staff nurses.

Read the new report here.

Nurses will continue striking for staff retention Thursday, Nov. 13, and will return to work on Friday, Nov. 14.

UMCNO nurses won a historic union election and began negotiating this contract with LCMC Health, UMCNO's owner and operator, in March 2024. Nurses have given advance notice to the hospital for their strike and will maintain a patient protection taskforce throughout.

NNOC/NNU represents 600 nurses at UMCNO.

National Nurses United is the largest and fastest-growing union and professional association of registered nurses in the United States with more than 225,000 members nationwide. NNU affiliates include California Nurses Association/National Nurses Organizing Committee, DC Nurses Association, Michigan Nurses Association, Minnesota Nurses Association, and New York State Nurses Association.