LSU Hospital System May Close Hospitals as Result of Medicaid Cuts

The Louisiana State University Health System based in Baton Rouge currently does not know how it will deal with $329 million in Medicaid cuts for fiscal year 2013, and closing hospitals could be a possibility, according to a New Orleans Times-Picayune report.

Last week, the Louisiana Department of Health and Hospitals announced it will officially slash $859.2 million from the state Medicaid program for FY 2013, with LSU Health System swallowing a large portion of the cuts.


LSU Board of Supervisors Chairman-elect Robert Yarborough said in the report that hospital closures are not what the system wants to do, but the system was dealt an unfavorable hand. "We're looking at all options and it depends on how successful the other options are," Mr. Yarborough said. "It's an option if some of the other options don't work out like we hope them to."

The board has not discussed which individual hospitals within LSU Health System could be shuttered.

More Articles on Hospitals and Medicaid:

Reduced Reimbursement Isn't "Reform," Says CEO of Massachusetts Hospital Assoc.

Louisiana Unveils $859.2M in Medicaid Cuts

Massachusetts Hospital Association: State Medicaid Cuts Are a "Barrier" to Reform

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