Jindal won't scrap hospital privatization model

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Associated Press

Posted on May 5, 2014 at 4:07 PM

BATON ROUGE, La. (AP) — Gov. Bobby Jindal's chief budget adviser says the administration won't reverse course on the privatization of state-owned hospitals that care for the poor and uninsured.

Federal officials have rejected the financing plans to pay for most of the privatization contracts. But Commissioner of Administration Kristy Nichols told lawmakers Monday that the denial won't force an adjustment in the health care model.

Instead, Nichols says the state will appeal the ruling from the U.S. Centers for Medicare and Medicaid Services. She says the administration also will be negotiating with CMS on alternative financing plans to keep the hospital deals in place, in case the appeal is denied.

Nichols says the financial implications of the rejection won't hit Louisiana until September 2015 and she's hopeful a resolution can be reached before then.

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