Louisiana hospital operator accuses state of giving favorable funding to New Orleans

Gov. John Bel Edwards’, D-La., administration has called out Shreveport, La.-based BRF for mismanaging state safety net hospitals, but BRF contends that the state’s payment formula discriminates against the northern Louisiana hospitals it operates, according to The Times-Picayune.

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The state government sent BRF breach-of-contract letters earlier in September, accusing the company of mismanaging state-owned hospitals in Monroe and Shreveport. However, BRF argues that the alleged mismanagement is caused by the state’s underfunding.

“North Louisiana hospitals get only 32 cents per patient for every dollar received by New Orleans. We will fight for a funding model that treats the citizens of north Louisiana fairly, and provides for adequate health care for those who need it most,” said Malcolm Murchison, chairman of BRF.

State officials allege BRF’s calculations on the funding discrepancies are skewed and said BRF was on a “public relations offensive”.

“I guess (they’re) trying to justify the shortcomings they’re having. But this argument about discrimination and this whole barrage of information that they have fired off in the past month or so is brand new,” said Commissioner of Administration Jay Dardenne.

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