re: Why is a children’s hospital looking at spending $50M for naming rights at new LSU arena?

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Who chooses a hospital based on arena naming rights?

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The teams that will play at the arena, the school that sponsors those teams and has lots of injured/sick employees, the ambulances that take people who are injured at concerts there, etc.

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The teams that will play at the arena, the school that sponsors those teams and has lots of injured/sick employees, the ambulances that take people who are injured at concerts there, etc.

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So that's part of the contract? OLOL has some sort of exclusivity? I suspect the employees have their own doctors and specialists that have privileges at different hospitals.

If you don’t think they are getting something besides their name on a building, I don’t know what to tell you.

Not for workers' comp, I don’t think. ETA: I see in LA, you can. But they can make OLOL the preferred network for what they provide (which I'm sure they will, if its not already).

And they can definitely privately contract the injuries that occur there to go to their ER. I can virtually guarantee that would be in there (with obvious exceptions).

A lot of stadiums are named after medical companies.

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They're already a sponsor of LSU Athletics, right?

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So is Cane's. So is Nike. Does that stop them from continuing to invest?

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but hospitals don't really depend on advertising

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I always wondering about this. If its a private hospital in a big city I get that, but I never seen a hospital commercial or ad and thought "I think I am going to give them a try". It seems like its more about the doctors who are there.

If I go to my doctor for something and I need to see a specialist I am going to go to whoever he recommends (which will be someone who works for that hospital likely at a different location). If I wasn't happy with that doctor then I am looking for the best doctor, not the best hospital.

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OLOL looking to spend $50+ million on naming rights of new LSU arena that won’t even be owned by LSU. This whole arena proposal seems like some insiders will have their pockets lined nicely. Shouldn’t OLOL use these funds towards lowering hospital costs instead of an arena?

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Don’t they also have the naming rights to ULL stadium?

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What percentage of patients actively choose their hospital?

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It’s not about percentage of patients so much as percentage of revenue. You have to remember these hospital systems do a lot more than treating patients admitted from the ER.

If you want a real-world example, look at Baton Rouge’s only (AFAIK) for-profit hospital - Woman’s. Many doctors who work at Woman’s also have privileges at other hospitals in Baton Rouge. I would venture to say that almost all women who deliver at Woman’s choose to deliver at Woman’s. And that labor & delivery business is quite profitable for them.

You have similar practices within systems like Ochsner or FMOL, but Woman’s makes for a pretty easy example to explain.

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Ok. How about being charitable and explain? What percentage of patients actively choose their hospital?

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The ones who schedule surgery mainly.

Hysterectomies, back surgeries, transplants, cancer treatments, etc.

These are the big money items.

I appreciate your answer.

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If you don’t think they are getting something besides their name on a building, I don’t know what to tell you.

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But they can make OLOL the preferred network for what they provide (which I'm sure they will, if its not already)

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As part of the naming rights contract or a separate deal?