SHREVEPORT, LA (KSLA) - LSU is cutting ties with the Biomedical Research Foundation as operator of University Health hospitals in Shreveport and Monroe.
According to a statement released shortly after 12 p.m. Thursday, LSU announced that the system had served formal notice to the Biomedical Research Foundation of Northwest Louisiana, or BRF, of "breach of the public purpose set forth in the agreed upon Cooperative Endeavor Agreement, or CEA, and that pursuant to the CEA, BRF must withdraw as the parent company of University Health System."
The University Health System has operated hospitals in Shreveport and Monroe since Shreveport's LSU Health Shreveport transitioned from a public hospital to private in October 2013, with the Biomedical Research Foundation Hospital Holding Company (BRFHH) taking over operations. The medical school remained a publicly-funded part of the LSU System.
In July 2015, LSU outlined grievances about the management of the hospitals, alleging the BRF has failed to live up to its contract responsibilities as the operator of the public hospitals in Shreveport and Monroe.
Representatives from BRF and University Health denied the claims and went on to blame Willis-Knighton for trying to steal University Health's clients. BRF and University Health Shreveport went on to file an anti-trust suit against Willis-Knighton.
Now, LSU has given the BRF the boot.
"We have exhausted all avenues to resolve our differences amicably and now must take action that we hoped would not be necessary," LSU President F. King Alexander said. "We want to secure operational and financial stability through a viable partnership, so we can continue to ensure both high quality healthcare and medical education."
The statement issued Thursday by LSU went on to address the resulting transition to a new operating partner.