Mayor announces federal funding for New Orleans East hospital - FOX 8 WVUE New Orleans News, Weather, Sports, Social

Mayor announces federal funding for New Orleans East hospital

New Orleans, La. - It's full speed ahead for construction of a full service hospital in New Orleans East.

Mayor Mitch Landrieu announced Monday that the U.S. Department of Housing and Urban Development has issued a commitment to insure a $97.6 million mortgage loan for the hospital.

"Now we have the ability to break ground on that hospital," said Mayor Landrieu. "We have full payment for it and we are thrilled about going forward with it."

Health Commissioner Karen DeSalvo joined the Mayor for the announcement. "It's a critical milestone in restoring hospital services to New Orleans East," said DeSalvo. "Just a great joy to be able to announce that we've completed the financing, so we can keep moving expeditiously on getting services back to that community. They deserve it and the time is now."

The $130 million project will include a full service hospital with 80 beds. It will be built on the site of the old Methodist Hospital. The hospital is expected to be complete by the end of 2013.

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