NICU Expansion, Medicaid Plan Shift, and Post-Mardi Gras Virus Surge Lead New Orleans Health Updates
New Orleans, LA – March 7, 2026 – Plans to expand a major NICU, a looming Medicaid plan change, and a post-Mardi Gras virus surge are shaping local health care.
New Orleans’ healthcare landscape is shifting this week, with a major neonatal intensive care expansion, an upcoming Medicaid managed care change, and a recent rise in respiratory illnesses following Carnival season.
Children’s Hospital Plans 60-Bed Level 4 NICU
Manning Family Children’s announced plans to build a new 60-bed Level 4 neonatal intensive care unit at its New Orleans campus. The project would expand the hospital’s current main-campus NICU capacity from 35 to 60 beds.
Hospital leaders said the expanded unit is designed to serve critically ill newborns from across Louisiana and the Gulf South. The NICU will anchor a broader regional neonatology network tied to LCMC Health birthing hospitals and affiliated partners. Construction is expected to begin this spring, with the new unit projected to open in 2027.
Medicaid Members Face April 1 Plan Change
The Louisiana Department of Health continues to advise Medicaid members that UnitedHealthcare will exit the state’s Medicaid managed care program effective April 1, 2026. Current UnitedHealthcare coverage is scheduled to continue through March 31, 2026.
Members enrolled in that plan are being directed to select a new Healthy Louisiana plan to avoid disruptions in care. State enrollment resources remain available online to help residents compare options and confirm provider networks before the transition date.
Respiratory Illnesses Rise After Mardi Gras
Local physicians have reported a noticeable increase in patients with flu, COVID-19, and RSV in the days following Mardi Gras celebrations. Doctors cited crowded events and close contact during parade season as contributing factors.
Clinicians noted that older adults and people with chronic health conditions may face higher risk of complications. Residents experiencing fever, cough, congestion, or other concerning symptoms are encouraged to follow public health guidance and seek evaluation when appropriate.
What Residents Should Know
The NICU expansion reflects longer-term investment in specialized pediatric care, while the Medicaid plan transition requires short-term attention from affected families. At the same time, circulating respiratory viruses highlight the continued importance of preventive measures during large community gatherings.
Sources:
If you have urgent symptoms, seek medical care. For general questions, talk with a licensed clinician.
