Firm operating two north Louisiana hospitals disputes breach claims by LSU, outlines case in letter

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Biomedical Research Foundation gave no ground to LSU Wednesday in its official response to the university’s claim the foundation is in breach of its contract to operate two north Louisiana safety net hospitals, but did say it’s eager to work out any differences.

The Shreveport Times reports foundation chairman Steve Skrivanos emailed a 16-page response to LSU President F. King Alexander to address each of the claims made in the breach notice LSU sent July 14, “although we strongly dispute that any breach has occurred,” the letter says.

BRF secured the contracts to operate the public hospitals in 2013 as part of Gov. Bobby Jindal’s plan to privatize Louisiana charity hospital system.

Contrary to LSU’s claims, Skrivanos says BRF’s operation of University Health in Shreveport and University Health-Conway in Monroe has elevated the quality of services delivered and stabilized the financial position of the hospitals.

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Among those improvements, Skrivanos lists: a reduction of clinic patient referral backlogs from 12,000 patients to 1,200; restoration of University Health as a certified Level 1 trauma center; development of an intensive care unit step-down unit and new stroke center; a 43% reduction in patient complaints; and an $80 million turnaround in earnings.

The three primary claims from LSU against the foundation in its breach notice were that the foundation failed to work collaboratively with LSU, it failed to support and promote LSU Health Science Center-Shreveport’s academic mission and reputation, and failed to establish a sustainable and competitive business model.

Skrivanos’ letter says the foundation has contributed more than $160 million to support the LSU medical school and received a pristine financial audit for fiscal year 2014. He also notes that the hospitals are showing a small profit so far in 2015.

The letter did admit BRF’s appointment of former chief executive Rod Huebbers “was a misstep, but it was quickly corrected” with Huebbers’ removal.

LSU’s breach notice also called for the immediate removal of Dr. John George as the current CEO because of a remark construed as racist by some who attended a community meeting in the spring, but Skrivanos’ letter says LSU has no standing in controlling hospital management.

“Dr. George has apologized for his unfortunate remark, and his apology has been accepted by the NAACP and the former Mayor of Shreveport, Cedric Glover,” the letter reads.

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