BATON ROUGE, La.—Plans to privatize most of Louisiana State University's public hospitals means borrowing for repairs and construction of the health facilities will be taxable. That borrowing will cost the state more. The Louisiana State Bond Commission learned that bonds issued for LSU hospitals and clinics slated to be managed by private hospital operators don't meet the requirements for tax-exempt status by the Internal Revenue Service. Nearly $56 million in taxable borrowing was approved last week for LSU healthcare facility construction projects, done through bond sales to investors that are paid off over time. Whit Kling, director of the Bond Commission, says the repayment of those bonds will cost the state $13 million more than if the bonds were tax-exempt. Gov. Bobby Jindal has pushed to privatize the LSU hospitals to save the state money in operating funds.
—Associated Press
