Health dept. submits new hospital financing plan
BATON ROUGE - A revised financing plan for six LSU hospital privatization deals has been filed with the federal agency that oversees Medicaid spending, which rejected previous versions.
The Department of Health and Hospitals submitted its new proposal Friday.
Questions remain about whether previous pieces of the financing arrangements that Gov. Bobby Jindal's administration worked out with the private managers that took over the LSU hospitals.
The new proposal wouldn't change existing reimbursement rates to the private hospital managers. Instead, it would establish that hospitals providing services previously overseen by LSU are a new category with a special reimbursement rate.
The administration isn't making changes, however, to the "advance lease payments" that the hospital managers paid upfront as part of the no-bid contracts with the state. Federal officials took issue with the payments.
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