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Five LSU HCSD Hospitals Now Engaged in Public-Private Partnerships

Interim LSU Public Hospital
Interim LSU Public Hospital

Baton Rouge -- On June 24, 2013, the public-private partnerships of four hospitals of the LSU Health Care Services Division went into effect, removing LSU from management of the hospitals.

The Interim LSU Public Hospital in New Orleans is now under the management of Louisiana Children’s Medical Center. LCMC will also manage the new University Medical Center once construction is complete. Leonard J. Chabert Medical Center in Houma has joined with Terrebonne General Medical Center and Southern Regional Medical Center, which will deliver services through the Ochsner Health System. University Medical Center in Lafayette has partnered with Lafayette General Medical Center.

Leonard J. Chabert Medical Center
Leonard J. Chabert Medical Center
Dr. W. O. Moss Regional Medical Center in Lake Charles has closed as an inpatient facility and has transferred its services to Lake Charles Memorial Health System, which will operate clinics on the Moss campus.

Earl K. Long Medical Center in Baton Rouge closed in April when LSU Health Baton Rouge began its partnership with Our Lady of the Lake Regional Medical Center.

In October, E. A. Conway Medical Center in Monroe and LSU Medical Center in Shreveport will join with the nonprofit Biomedical Research Foundation of Northwest Louisiana.

In early January 2014, Bogalusa Medical Center will begin a partnership with Franciscan Missionaries of Our Lady Health System.

University Medical Center
University Medical Center
Work continues on a partnership agreement for Huey P. Long Medical Center in Pineville, which is under the management of LSU Health Shreveport.

For now, Lallie Kemp Medical Center in Independence will remain with LSU HCSD.

This major transformation of public healthcare in Louisiana occurred in a span of twelve months, beginning in July 2012, when Congress reduced the state’s disaster-recovery Federal Medical Assistance Percentage (FMAP) rate from 71.92 percent to a projected 65.51 percent, the lowest reimbursement rate Louisiana has had in more than 25 years. The FMAP is a major source of funding for the hospitals. Congress made the cut to correct a mistake in calculation that had given Louisiana the higher rate.

Dr. W. O. Moss Regional Medical Center
Dr. W. O. Moss Regional Medical Center
The Division of Administration indicates that privatization of the nine LSU hospitals will save the state approximately $100 million dollars annually. The savings will be the result of the private hospitals making lease payments to the state for the use of state hospital facilities, except for the partnership involving Leonard J. Chabert Medical Center. The private partner there will pay for services but won’t be leasing the hospital.

With a larger patient base, the partnerships should expand learning experiences for those in LSU graduate medical education. The effort will also increase patients’ access to high-quality healthcare in facilities that will have funding to keep pace with advances in medicine.