Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

LSU Hospital Privatization to Produce $39M Less Than Expected

The privatization of nine hospitals within Baton Rouge-based Louisiana State University Health Care Services Division will produce about $38.8 million less in lease payments than the $140.3 million projection in the state budget, according to a report from the Louisiana Legislative Fiscal Office.

The Louisiana State University board of supervisors has approved a plan that would close Huey P. Long Medical Center in Pineville, La. Finding a private partner to lease hospital would help reduce the shortfall, although the report still predicts a shortfall between revenues and appropriation levels even with those additional lease payments.

The report comes on the heels of the Louisiana State Civil Commission's approval of the privatization of two of the LSU hospitals. With the commission's approval, Shreveport-based Biomedical Research Foundation will take over Shreveport-based LSU Medical Center and E.A. Conway Medical Center in Monroe, La., starting Oct. 1.

The privatization plan surrounding LSU's hospitals has been controversial within the state. The Louisiana legislature has said the privatization plan will save the state $100 million annually, but a state audit said the resulting layoffs associated with the plan could cost more than $40 million.

Still, the state has said it cannot afford to run the hospitals as public entities anymore. Lallie Kemp Regional Medical Center in Independence is expected to be the only hospital within LSU to remain a public entity.

More Articles on LSU Hospital Privatization:
LSU Approves Closure of Huey P. Long Medical Center
Louisiana Panel Approves Privatization of LSU Hospitals
Louisiana Hospital Could Receive $148.4M for Nonpaying Patients

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars