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Audit: $42M in layoff costs for LSU privatization

3 years 4 months 2 weeks ago May 13, 2013 May 13, 2013 Monday, May 13 2013 May 13, 2013 9:12 AM in News
Source: Associated Press

BATON ROUGE - A new audit says Gov. Bobby Jindal's push to privatize all but one of the LSU-run hospitals across south Louisiana would cost the state $42 million for layoff costs.

The analysis by Legislative Auditor Daryl Purpera's office says privatization of six hospitals in the LSU Health Care Services Division would require an estimated $29 million for termination pay and another $13 million for unemployment payouts.

The audit, released Monday, says LSU told auditors the administration knows of projected costs and is seeking funding to cover the expense.

More than 5,000 workers at the hospitals and associated clinics face layoffs because of privatization. They can reapply for their jobs with private hospital operators that would take over management of the operations.

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