Jindal administration still planning on privatization

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Posted: May 5, 2014 11:54 AM
Updated: May 5, 2014 12:45 PM
Source: Associated Press

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Topics: jindal, administration, governor jindal, kristy nichols, hospital, privatization, federal, contracts, nichols

BATON ROUGE - Governor Jindal's top budget adviser says the administration is going ahead with privatization of state-owned hospitals, despite federal approval problems.

Commissioner of Administration Kristy Nichols told lawmakers Monday that federal rejection of the privatization contracts won't force an adjustment. Nichols says the state will appeal the ruling from the U.S. Centers for Medicare and Medicaid Services, while negotiating on alternative financing plans in case the appeal is denied.

Nichols told lawmakers that any budget implications would not hit until September 2015 and she believes a resolution will be reached before then.

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