Feds to withhold millions in Medicaid if deal not reached for LSU hospitals

Feds to withhold millions in Medicaid if deal not reached for LSU hospitals

Feds to withhold millions in Medicaid if deal not reached for LSU hospitals

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wwltv.com

Posted on April 10, 2014 at 7:39 PM

Updated Thursday, Apr 10 at 8:23 PM

Melinda Deslatte / Associated Press

BATON ROUGE, La. (AP) - Federal officials have warned Gov. Bobby Jindal's administration that it will withhold $307 million in Medicaid money from the state if no agreement has been reached on financing plans for the privatized LSU hospitals.

The federal Medicaid office notified Gov. Bobby Jindal's administration about the payment delay this week.

Jindal's health secretary, Kathy Kliebert, said Thursday the announcement was expected because of continuing negotiations over financing plans for uninsured care at LSU hospitals that have been privatized.

But Kliebert's office says if any money is withheld, that's at least a year or more away.

Most of LSU's charity hospitals were turned over to private managers, but federal officials haven't decided yet whether they'll agree to the money arrangements used to pay the new hospital operators.

 

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