Louisiana begins process of terminating Biomedical Research Foundation’s hospital contract, but negotiations continue

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Louisiana Gov. John Bel Edwards says the state will begin the process of terminating the Biomedical Research Foundation’s contract to operate safety net hospitals in Shreveport and Monroe, the USA Today Network of Louisiana reports. However, the governor didn’t rule out reaching a resolution with the foundation.

“I am disappointed that we have not been able to reach an agreement with the BRF about the operation of the public-private partnership hospitals in Shreveport and Monroe,” Edwards says. “When I set out to renegotiate these contracts, I did so in an effort to provide quality health care to our citizens while ensuring that the agreements were in the best interests of the taxpayers.” 

Negotiations will continue with the foundation during the 45 days it will take to terminate the contract, says Edwards spokesman Richard Carbo. Edwards’ executive counsel Matthew Block is scheduled to meet with Biomedical Research Foundation officials in Shreveport next week.

The foundation operates the two hospitals as University Health System. It’s contract was the last of nine public-private partnership agreements the Edwards’ administration sought to renegotiate.

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The agreements, signed during Gov. Bobby Jindal’s administration, privatized nine LSU-run hospitals and their clinics through no-bid contracts.

All of the other hospital and clinic operators—including Our Lady of the Lake Regional Medical Center in Baton Rouge—have signed renegotiated agreements with the Edwards administration that include similar terms to what is being sought with the foundation.

The foundation, however, disputes that similar contracts were offered to each hospital. Steve Skrivanos, chairman of the University Health board of directors, says the terms offered to the Shreveport and Monroe hospitals were significantly different from the contracts offered to providers in New Orleans, Baton Rouge and Lafayette.

“We cannot sign an agreement that unfairly targets the Shreveport and Monroe hospitals while putting the health care of North Louisiana citizens at risk,” Skrivanos says in a statement released today. “The citizens of North Louisiana should demand transparency from the state and LSU about what is really going on here.”

The USA Today Network of Louisiana has the full story.

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