The Louisiana Department of Health and Hospitals recently proposed reducing payments to hospitals under contract with the state by $137.8 million.
Louisiana legislators are now negotiating with the nine charity hospitals in Louisiana that contract with the state to treat low-income patients. Due to the budget cuts, six of the hospitals’ CEOs said they’re mulling over dropping their state contracts.
The budget shortfall is affecting medical schools as well. Larry Hollier, MD, chancellor of LSU Health Sciences Center New Orleans, said he’d have to close programs affecting 877 students if the budget cuts occur.
New Orleans-based University Medical Center, which trains 900 residents from LSU and New Orleans-based Tulane University each year, would also see contract troubles. “So while higher education is taking a reduction, if the healthcare cuts are in place, the academic institutions will take a reduction on that side as well,” said Greg Feirn, CEO of LCMC Health, which runs University Medical Center under a contract.
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