CMS Rejects Louisiana’s Hospital Privatization Plan

Article archive / May 1, 2014

Originally published: . Volume 5, No. 9. Source pages: 9.

Federal officials at the Center for Medicare and Medicaid Services (CMS) have declined to qualify the plans for privatization of six state-owned hospitals that serve the uninsured and poor. The rejections involve the LSU-run hospitals in New Orleans, Lafayette, Houma, Lake Charles, Shreveport and Monroe. "To maintain the fiscal integrity of the Medicaid program, CMS is unable to approve the state plan amendment request made by Louisiana," the federal agency said in a statement as reported by the AP.

In a statement from DHH Secretary Kathy Kliebert, she said, "CMS noted that they support the mission of the public-private partnerships and the effort to create equality in the delivery of health care to the residents of Louisiana. This denial by CMS is in stark contrast to earlier approval of four SPAs for the public-private partnership with Our Lady of the Lake (OLOL) in Baton Rouge. The SPAs for OLOL were approved in July of last year and included advance lease payments for four clinics to be operated by the private partner.”

Both Governor Jinday and Kliebert said they will appeal the decision.


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