The proposed cuts aim to address a $1 billion budget shortfall in Louisiana. Under the proposal, all discretionary money normally set aside for government hospitals will be eliminated.
While private operators took charge of many government-funded hospitals a few years ago, the operators are allowed to stop running the institutions if they feel the hospitals are being shortchanged. Should that happen, the hospitals face closure, and thousands of hospital employees may be laid off, several lawmakers and lobbyists told The Times-Picayune.
Some lawmakers are confident the state legislature will evade the cuts by raising money elsewhere, such as renewing or raising state taxes, the report states.
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