State Approves $3M Budgetary Loan for St. Bernard Parish Hospital

Louisiana's bond commission has approved a $3 million budgetary loan to St. Bernard Parish Hospital in Chalmette, La., according to a report from The Advocate.

The loan will tide the hospital over until it receives $10 million in insurance payments that have been delayed because of billing problems, according to the report. Wayne Landry, the hospital's CEO, told state officials yesterday the facility encountered issues with its "dysfunctional" billing software, leading to rejections and denials. Additionally, the hospital wasn't able to get permission to bill Medicare for months and was then assigned the same Medicare billing number as a healthcare organization in New Jersey.

St. Bernard Parish Hospital opened in 2012, replacing Chalmette Medical Center, which was damaged by Hurricane Katrina in 2005. Since then, the hospital has hit a number of speed bumps. In October 2012, Franciscan Missionaries of Our Lady Health System, based in Baton Rouge, La., decided it would no longer manage St. Bernard Parish, leading the hospital to alter its financing agreement with Goldman Sachs to gain the right to self-manage.

The hospital could see additional operating revenue if St. Bernard Parish voters approve a new, one-time property tax to raise $9 million and improve the hospital's cash flow. The tax proposal will appear on the April ballot.

In 2014, the hospital expects to see $36.3 million in revenue, up from $24.5 million last year, according to the report.

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