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LSU Hospital Privatization Plan Running Out of Funds

The privatization plan surrounding Baton Rouge-based Louisiana State University Health Care Services Division and LSU Health – Shreveport is entering choppy water, as outsourcing contracts for three of the hospitals will use up 94 percent of the plan's dollars, according to an Advocate report.

A report issued to the state's Senate Finance Committee found that privatizing the three hospitals in Baton Rouge, New Orleans and Lafayette will cost $589 million, just short of the $626 million the state allotted for next year's privatization plan. Gov. Bobby Jindal had planned on privatizing five other public LSU hospitals by the end of next June, but Louisiana's Department of Health and Hospitals said more funding will be needed, according to the report.

The report also detailed how many LSU hospitals won't have enough money to operate for the next fiscal year. Huey P. Long Medical Center in Pineville, part of LSU Health – Shreveport, is in the worst condition, as it will have no remaining operating funds after June 30, according to an Advertiser report.

The news comes on the heels of another state report, which found LSU Health Care Services Division is expected to have to pay $42 million in one-time layoff costs associated with the privatization plan.

More Articles on LSU Hospitals:

Audit: LSU Hospital Layoffs Would Cost State $42M
LSU Board Approves Leasing 2 Hospitals to Private Operators
Louisiana Can Privatize Hospitals Without Legislators' Approval, State AG Says

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