Feds reject Jindal's LSU hospital deals - KSLA News 12 Shreveport, Louisiana News Weather & Sports

Feds reject Jindal's LSU hospital deals; DHH will appeal

LSU Interim Hospital/FILE LSU Interim Hospital/FILE

BATON ROUGE, La. (AP) - Federal officials have rejected financing plans by Louisiana Gov. Bobby Jindal's administration for privatization deals involving six state-run hospitals.

The U.S. Centers for Medicare and Medicaid Services notified the state health department Friday of its refusal to sign off on the deals. The agency said they don't meet federal guidelines governing how Medicaid dollars can be spent.

The decision was a significant blow to the Jindal administration and could create massive upheaval in the state's budget because the deals rely on hundreds of millions of dollars in federal funding.

Jindal didn't wait for federal approval before he shifted the hospital management, so the hospitals are now operating under financing plans that have been rejected.

The rejections involved plans for LSU-run hospitals in New Orleans, Lafayette, Houma, Lake Charles, Shreveport and Monroe.

The DHH said it will appeal the decision and released a statement which read, in part:

"Late this afternoon, the Louisiana Department of Health and Hospitals (DHH) was notified by the federal Centers for Medicare and Medicaid Services (CMS) that the remaining state plan amendments (SPAs) for the public-private partnerships have been denied. This is an unprecedented step by the federal government that contradicts earlier approval actions by CMS. The Department will appeal the decision by CMS through an administrative appeal. There is no short-term budget impact as a result of the CMS decision."


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