Jindal administration rewrites LSU hospital privatization contracts, seeking federal support



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BATON ROUGE, Louisiana — Gov. Bobby Jindal's administration has renegotiated its contracts for six LSU hospital privatization deals. The administration hopes to reach a compromise with federal health officials that will keep Medicaid dollars flowing to the privatized patient services.

At issue are contracts governing the management transfer of hospitals in New Orleans, Lafayette, Bogalusa, Shreveport and Monroe and a deal that closed LSU's Lake Charles hospital and moved its inpatient services to a nearby private hospital.

In May, the U.S. Centers for Medicare and Medicaid Services rejected financing plans for those six privatization deals and sought a rewrite.

The new proposal involves changing the way the hospital managers are paid, establishing a new, special reimbursement rate.

The LSU Board of Supervisors holds a special meeting Wednesday to consider the rewritten contracts.

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