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Privatization plans for LSU hospitals approved

2 years ago December 14, 2012 Dec 14, 2012 Friday, December 14 2012 Friday, December 14, 2012 11:00:51 AM CST in News
Source: Associated Press

BATON ROUGE - The LSU Board of Supervisors has agreed to turn over operations of its public hospitals in New Orleans, Houma and Lafayette to nonprofit corporations that run private hospitals in the cities.

The board approved the idea unanimously at a special meeting Friday.

The privatization plan is being pushed by Gov. Bobby Jindal to cut state costs at the hospitals that care for the poor and uninsured and provide graduate medical training.

The companies taking over hospital management will make lease payments to the state, dollars that Jindal health secretary Bruce Greenstein says will draw federal matching money to pay for services. Lease terms are under negotiation and haven't been released.

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