The Redevelopment of Pendleton Memorial Methodist Hospital

A True Story of Public Private Partnerships



In 2005 Hurricane Katrina devastated Pendleton Memorial Methodist Hospital in New Orleans East to such an extent that it never opened again. In the years following the hurricane, the population of the region east of the Industrial Canal slowly rebounded and by May 2010, the area reached approximately 70% of its pre-Katrina population; yet a full service hospital had not been re-opened to serve the residents.

In early 2011, Navigant was commissioned to evaluate the healthcare needs of the area and the potential for sustainable healthcare services. The final report suggested ambulatory services could be sustainable however highlighted the reality that a full service hospital would be financially difficult to sustain. Recognizing the importance of full service healthcare to the region, the Mayor of the City of New Orleans, State of Louisiana health officials, and the Orleans Parish Health Service District Board committed to finding a way to bring a full service hospital to New Orleans East.

An RFP was issued for program management and strategic consulting services to develop a Vision, Business Plan, Master Plan and Implementation Plan for a new hospital and to manage the financing, design and construction of the facility.

Navigant, in partnership with DMM Associates of New Orleans was selected to bring Healthcare Real Estate, Strategy and Performance Improvement experts together with local market knowledge to form a full service Team of consultants for the development of a sustainable solution for full service healthcare in the region. The new and repurposed facilities had to meet new codes for hurricane and projectile resistance as well as emergency preparedness.



The facility opened in July 2014, including the six-story repurposed clinical services tower along with a new 3-story operating suite platform and emergency department. Funding sources include State of Louisiana Community Development Block Grants, FEMA funds and a HUD 242 insured loan. This was only the second public project in Louisiana history to receive permission from the State to use a Construction Manager at-Risk contracting and delivery approach in lieu of the tradition design-bid-build approach. Understanding the challenges and difficulties of the project, the Project Team also committed to achieving a “partnering” approach through team building events and development of guiding principles based on equity, transparency, and mutual benefit to focus the team on common goals. This significantly contributed to the success of the project.

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