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Feds: La. must repay $190M from LSU hospital deals

3 years 11 months 3 weeks ago Tuesday, December 23 2014 Dec 23, 2014 December 23, 2014 4:15 PM December 23, 2014 in Health
Source: Associated Press

BATON ROUGE - The federal Medicaid agency has approved financing plans for contracts that turn six LSU hospitals over to private companies. That ends questions about whether care for Louisiana's uninsured could be in jeopardy.

But the Centers for Medicare and Medicaid Services also ordered Louisiana to repay $190 million to the federal government, for payments made under prior contracts - deals that the agency later rejected.

The Department of Health and Hospitals said Tuesday that it will appeal the order to repay the money. CMS says it's owed because federal officials rejected "advance lease payments" from private companies.

Gov. Bobby Jindal made the hospitals private without first getting federal approval, which was needed because they rely on Medicaid money. The state rewrote the contracts after CMS rejected financing plans in May.

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