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Jindal gives CMS new hospital financing plan

A revised financing plan for six LSU hospital privatization deals was filed Friday with the federal agency that oversees Medicaid spending, which rejected a previous version.

Louisiana's Department of Health and Hospitals submitted a new proposal, hoping the CMS will be more receptive to the rewritten plan.

"We have been in discussions with CMS about this. We are using their guidance and their advice in developing this state plan amendment," DHH Secretary Kathy Kliebert said.

But questions remain about previous pieces of the financing arrangements that Gov. Bobby Jindal's administration worked out with the private managers that took over the LSU hospitals.

The new proposal wouldn't change existing reimbursement rates to the private hospital managers. Instead, it would establish that hospitals providing services previously overseen by LSU are a new category with a special reimbursement rate. And it would remove any reference to the specific privatization contracts from the financing plan.

The CMS has 90 days to review the proposal.

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