Representatives from Children's Hospital told the City Council on Thursday they are committed to providing mental health treatment to adolescents and younger children, but believe reopening the New Orleans Adolescent Hospital would be prohibitively expensive. Children's is in negotiations with the state to buy the 17-acre NOAH property for $29 million, but will only do so if the Legislature...
Representatives from Children's Hospital told the City Council on Thursday they are committed to providing mental health treatment to adolescents and younger children, but believe reopening the New Orleans Adolescent Hospital would be prohibitively expensive. Children's is in negotiations with the state to buy the 17-acre NOAH property for $29 million, but will only do so if the Legislature removes a requirement that the hospital be put back in service.
Whether Children's will open the NOAH facility -- or, alternatively, expand mental health services at a nearby psychiatric building Children's already owns -- has become a contentious issue in the past few weeks.
Some New Orleans lawmakers have filed a bill that would allow Children's to buy the property without the mental health requirement the Legislature mandated last year. BUt Rep. Neil Abramson has filed another bill that would strip Children's of its preferential right to the property if it doesn't reopen NOAH.
At Thursday's council meeting, Brian Landry, a vice president for marketing, told council members there is room to expand the nonprofit hospital company's 33-bed facility on Calhoun Street. Landry said Children's can open up another 16 beds there and will do so if the hospital sees the demand.
Afterwards, speaking with reporters, Landry said Children's is constantly monitoring the need for beds. He chafed at the idea that the Legislature would mandate certain services, saying Children's already takes seriously its responsibility to offer psychiatric care. Children's has lost $2.5 million on operating costs in the mental health unit since it opened in 2007, he said.
Landry said the state and local government need to come together to figure out what services are needed and how they can best be provided.
Dr. Andrew Williams, medical director for the Children's mental health facility, said there is a "near full census" on most days, but the unit can usually accommodate new patients.
Abramson has said he sees a clear need for more mental health services for kids in New Orleans.
City officials and juvenile justice advocates have complained in recent months about the lack of short-term beds in the city. Mental health advocates also have complained that, since the closure of NOAH in 2009, too many children have been sent out of the metropolitan area for treatment, preventing their families from being deeply involved in their care.
Abramson has noted that the NOAH property, which is adjacent to Children's Uptown campus, hasn't been put out to bid, as would be the normal process. Instead, Children's got first dibs. That privilege should be in exchange for providing needed services, he said.
Landry said the $29 million that Children's is prepared to pay for the NOAH property is more than it's worth, according to appraisals commissioned by the state, which peg its value at about $20 million. Children's would pay more because the property is key to the hospital's expansion needs, he said.
The state has actually been counting on Children's paying even more. The budget for the current fiscal year budget calls for the property to be sold for $35 million.
The Children's presentation didn't spark much discussion by the council, who were anticipating a long debate over proposed food truck ordinances.
Councilwoman Susan Guidry told Landy she hoped "we can come to a resolution."