Legislature Approves Funds for LSU/VA Hospital in N.O.

Baton Rouge - The Louisiana Legislature has approved $74 million dollars immediately for land acquisition and design for the new LSU/VA medical complex in downtown New Orleans, and another $226 million to be allocated when the business plan is finalized.

The mail-in vote tally was 68 to 24 with one abstention in the House, and 32 to 6 in the Senate.

"We thank the Legislature for their clear mandate for this project, which will offer much needed health care for Louisiana citizens," said Donald Smithburg, CEO of the LSU Health Care Services Division. "We look forward to continuing our work with the VA in the design and health-care providers for the prevention of disease and early intervention for Baton Rouge citizens," said Donald Smithburg, CEO of LSU Health Care Services Division.

The measure now goes to Housing and Urban Development Secretary Alphonso Jackson for approval.

The medical complex will replace LSU and VA facilities that were destroyed in Hurricane Katrina.

The Joint Legislative Committee on the Budget overwhelmingly approved the plan on March 2 after narrow rejection of an earlier version by the full Legislature. Under the revised, two-part action plan, $74 million in Federal Community Development Block Grant funds will be allocated for land acquisition and planning for the hospital, and the balance of $226 million in CDBG funds will follow once the state and LSU submit a revised hospital business plan for approval.

The Louisiana Recovery Authority would get to review and comment on the business plan, but not have veto power.

"The legislative vote is a very encouraging endorsement of LSU's plan for this critical project," said LSU System President Dr. William L. Jenkins, who also cautioned that the process faces additional hurdles as efforts shift to Washington where LSU will press its case for the joint hospital with HUD Secretary Jackson.

"Everyone should understand that we have additional steps to take, including getting full funding from the state before construction begins," Jenkins said.

In February 2006, LSU and the VAVA Department of Veterans Affairs began planning a joint medical complex that would have separate hospitals for the VAVA and LSU, but would share some operating costs for heating and air conditioning, food service, and lab facilities. Shared services could save up to $15 million per year in annual operating costs.