Louisiana Gov. Jindal pushes ahead with LSU hospital privatization

Louisiana Gov. Bobby Jindal's administration is pushing ahead with privatization plans for a Louisiana State University hospital that cares for the poor and uninsured in the central part of the state, despite the recent rejection of federal financing plans for other hospital outsourcing deals. The CMS said the privatization deals don't meet federal guidelines for Medicaid funds.

Lawmakers appear willing to support Jindal's effort. The state House Health and Welfare Committee last week voted 10-8 for a Senate-backed measure that would authorize the shuttering of the university-run Huey P. Long Medical Center in Pineville and move its services to two nearby private hospitals, Christus St. Frances Cabrini Hospital and Rapides Regional Medical Center, both in Alexandria.

The closure legislation by GOP state Sen. Gerald Long also received full House approval last week despite a recent decision from the CMS refusing Jindal's financing plans covering six privatization deals that turned over state-owned healthcare facilities to private managers. The governor plans to appeal, and state health officials also are trying to negotiate alternate funding plans to keep the hospital deals in place. LSU healthcare adviser Jerry Phillips said the federal refusal won't affect the Pineville plans because those plans aren't structured the same way.

Jindal has pushed to privatize nearly all university-run hospitals and clinics. Eight hospital deals have taken effect so far, though only one contractual arrangement in Baton Rouge has received federal approval.

Supporters of the Pineville privatization deal said it would provide better care for the poor and uninsured. But doctors who work at the LSU hospital said some services already have been shifted to the private facilities and patients have complained.