Privatization plans for LSU hospitals approved

The LSU Board of Supervisors today unanimously approved agreements announced earlier this week to turn over operations of LSU’s public hospitals in New Orleans, Houma and Lafayette to nonprofit corporations that run private hospitals in the cities. In a statement released following the vote, the board calls it “the first step in a process that will ultimately turn public hospitals into one, modern and sustainable innovative health care delivery system.” The privatization plan is being pushed by Gov. Bobby Jindal to cut state costs at the hospitals that care for the poor and uninsured and provide graduate medical training. The companies taking over hospital management will make lease payments to the state, dollars that Secretary Bruce Greenstein, of the Department of Health and Hospitals, says will draw federal matching money to pay for services. Lease terms are under negotiation and haven’t been released. The Louisiana Children’s Medical Center, which operates Children’s Hospital and Touro Infirmary, will lease the Interim LSU Public Hospital in New Orleans and the new $1.2 billion, 424-bed University Medical Center under development and set to open in about two years. Ochsner Health System, meanwhile, will manage the LSU hospital in Houma, the L.J. Chabert Medical Center. Lafayette General Health System will operate the LSU hospital in Lafayette, which is also called University Medical Center.