La. budget shortfall to terminate indigent care contracts at hospitals across the state

An estimated $750 million budget shortfall in Louisiana will likely prevent the state from funding partnerships with Baton Rouge, La.-based Our Lady of the Lake Regional Medical Center and other institutions that provide care for the uninsured, the Louisiana Department of Health and Hospitals told a state House budget committee.

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The state government currently manages 10 partnerships with medical institutions that deliver care to Louisiana’s indigent population. Proposed budget cuts would leave only enough funding to continue those partnerships with facilities in New Orleans and Shreveport, where LSUHealthSciencesCenter campuses are located, according to Business Report.

The state administration also made moves to preserve its relationship with Our Lady of the LakeWednesday when Louisiana Commissioner Jay Dardenne met with hospital executives.

“The door is not shut on this,” Mr. Dardenne told Business Report. “We’re cognizant of the important services [OLOL] is providing, and we don’t want to kill residency programs.”

To continue the partnership with OLOL, Mr. Dardenne said the hospital and state will need to renegotiate the existing contract, under which OLOL receives 100 percent reimbursement for indigent care and 95 percent reimbursement for Medicaid patients.

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