LSU System President William Jenkins says decisions haven't been made about how to strip $329 million from the university's hospital system. He offered no assurances to lawmakers that hospitals and clinics wouldn't be faced with closure.
A leader of Gov. Bobby Jindal's administration warned Thursday that hospital cuts could be worse if state income estimates don't improve to fill the remaining gap in the Medicaid budget.
Health and Hospitals Secretary Bruce Greenstein told House members any additional cuts would "fall primarily on the LSU hospitals."
Lawmakers want more details about $523 million in health care cuts made by Gov. Bobby Jindal's administration. The reductions fall largely on the LSU-run public hospital system.
House Speaker Chuck Kleckley called a Thursday meeting of the House budget and health care committees for presentations from LSU officials and from Health and Hospitals Secretary Bruce Greenstein, who made the decisions on funding cuts.
Moody's Investors Service says Louisiana's loss of as much as $859 million in Medicaid financing is a "credit negative" for the state.
The notation from the bond-rating agency does not yet affect the state government bond rating — currently high investment grade and stable — but denotes for investors a significant change in the state's balance sheet.
The Times-Picayune reports (http://bit.ly/Q4abRS) the cut is tied to a congressional reduction in Louisiana's federal Medicaid financing rate.
State Sen. Karen Carter Peterson says Gov. Bobby Jindal's decision to refuse expansion of the state's Medicaid program under the recently upheld federal health care law is akin to him signing a death warrant for community hospitals.
Peterson, head of the Louisiana Democratic Party, spoke at the Press Club of Baton Rouge Monday on the Medicaid cuts and the governor's rejection of the federal health care overhaul in Louisiana. The state Department of Health and Hospitals said Friday it will have to cut $329 million from the public health care system run by LSU.