A New Orleans judge has approved a $25 million settlement in a class-action lawsuit filed over the deaths of patients at a New Orleans hospital after Hurricane Katrina.
The deal was reached between Tenet Healthcare Corp., which operated the Memorial Medical Center, and lawyers for patients and others at the hospital during and after the storm. Memorial has since been sold.
“It was a daunting task,” Joseph Bruno, the lead attorney for the plaintiffs, said. “It took five years and a lot of work.”
The settlement still requires formal approval by those eligible to take part in the deal, including patients, survivors of the dead and visitors at the hospital when Katrina struck. That hearing is set for Oct. 27.
The approval of the settlement was made by New Orleans Civil Court Judge Rosmary Ledet Thursday night. Ledet called the proposed settlement “fair, reasonable and adequate.”
A spokeswoman for Tenet said Friday they would not comment on the settlement.
In the agreement Tenet still denies the charges against them.
The hospital flooded and lost power after the hurricane struck on Aug. 29, 2005, leaving patients – some seriously ill – suffering as temperatures soared. Authorities said 45 people died as rescuers fought floodwaters to reach the medical center in Uptown New Orleans.
“The hospital kept saying `we were providing a safe haven,”‘ Bruno said. “But they had not planned for flooding even though they had met with the Corps of Engineers and been warned the levees could be overtopped.”
Floodwaters from Katrina’s storm surge covered 80 percent of the city flooded as levees breached or were overtopped.
At Memorial, floodwaters filled the first floor and surrounding streets, making rescue difficult. Many of the seriously ill had to be carried to the roof so helicopters could pick them up two days after the storm.
Electricity in the area was lost and the hospital generator was useless after the flood filled the basement where the control switch was located.
Windows could not be opened to allow ventilation and temperatures reportedly rose to 110 degrees inside the building. Medical equipment requiring electricity had to be operated by hand.
There were 167 patients and about 1,400 non-employees in the hospital when the storm hit. Bruno said all would be eligible to take part in the settlement.
Ledet ordered that all possible members of the class action suit be notified of the proposed settlement by Aug. 5, and that any objections to it be filed by Sept. 21.
If the settlement is approved at the October hearing, Ledet will have Special Master Gilbert Andry IV, prepare and submit a distribution schedule of the $25 million less legal fees for her approval.
A tentative agreement between Tenet and the plaintiffs had been reached in March during jury selection for a trial, but the outlines of the agreement were kept confidential.
During the first quarter of 2011, Dallas-based Tenet Healthcare earned $73 million, down 17 percent from the first quarter of 2010. The company operates 49 hospitals in 11 states, along with 84 outpatient clinics.
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