Health cuts revealed

LSU’s hospitals hit hard

The Jindal administration unveiled part of its plan to close a nearly $860 million hole in the state’s health insurance program for the poor Friday, with the brunt of the reduction falling on the LSU hospital system.

More than $300 million of the $522.5 million in cuts announced in a late afternoon news conference took money for care of the uninsured used to operate the 10 hospitals, which are training grounds for the state’s future physicians, nurses and other health care professionals.

Threats of cuts of much less magnitude have prompted LSU officials in the past to warn that many of the hospitals would have close.

Commissioner of Administration Paul Rainwater said the administration hopes to close the remainder of the hole with funds that may be left over when the books finally close on the fiscal year that ended June 30.

If that additional revenue does not materialize by August or September more cuts to the state’s $7.7 billion Medicaid program would have to occur, he said.

“The bottom line is we will have a balanced budget,” said Rainwater.

The rate the federal government will pay toward Louisiana’s Medicaid program is changing from 71.92 percent to a projected 65.51 percent.

The change prompts a $859.2 million reduction to the state’s $7.7 billion Medicaid program. The change in federal participation occurs Oct. 1 with the beginning of the new federal budget year.

The move caught the Jindal administration by surprise, occurring after Louisiana’s legislature passed a new budget for the state fiscal year which began July 1. The Louisiana Medicaid reduction was a part of a compromise congressional federal transportation appropriations bill that also insured that Louisiana and other Gulf states would share in money from fines related to the BP oil disaster.

As it became apparent that the funds would be lost, Rainwater said that he and state health chief Bruce Greenstein had begun work on “a plan that continues to reform and restructure the way the state delivers health care services.”

More Information

Health care cuts

The Jindal administration outlined its strategy for balancing the budget after an unexpected reduction in federal funding. Major reductions in funding included:

n $329.2 million cuts to LSU hospitals.

n $85.6 million cuts to private Medicaid providers.

n $7.5 million cuts to rural hospitals.

n $5.3 million cuts to Bayou Health payments.

n $1.6 million from closure of Mandeville mental health hospital.

Source: Louisiana Department of Health and Hospitals

Comments

1) Comment by hughsbayou - 15/07/2012

Few people realize that those hospitals, as mentioned in the article, are the backbone of the medical education system. In most states they are funded to a great degree by Medicaid. To ignore this is to put at peril the whole system by which new medical personnel is trained and brought up into the system. If Jindal would put the needs of the people of Louisiana ahead of his own this would not be occuring. He acts like a spoiled child who when he doesn't get his way sits and pouts. "I won't do it, I won't!" in response to the ACA being found to actually the law of the land. It's unfortunate that he didn't explain to the people of LA just what his plans really were when he ran for governor. Bobby Jindal needs to grow up and become Robert Jindal, responsible adult.

2) Comment by LawyerDan65 - 15/07/2012

The RESTORE Act will bring in billions of $ of essentially non-resurring revenue (unless you anticiapte a BP spill every couple of years) that can only be spent on for coastal erosion and wetlands restoration, but also reduces on-going funding for Medicaid, meaning LA must close hospitals and reducing reimburseemnts to doctors who treat the poor.

3) Comment by Elderly Man - 15/07/2012

I am aware that many young women received SSI and Medicaid for depression, a treatable illness from which I suffer. I worked while these young women received large monthly payments. I also know many cognitively challenged young and old people who will never be independent, even though they work daily in sheltered workshops. Simply slashing funds without taking into account actual need is brutal. //My food budget allows me to spend about five dollars a day for food. I MIGHT once in awhile buy a pork roast or mussels but rarely. I do not see how people who are in food stamps can afford rib eyes or lobster. //I cannot afford to to to a movie. I just don't do that. I doubt the amount of money people get for SSI or other help allows them to do much.

4) Comment by Elderly Man - 15/07/2012

That might be the case but show me the numbers. I qualify for food stamps but I have never applied for them. Many poor people are simply poor and not dependent on those of you who have more than we do. I have visited poor folks at Earl K. Long and they were desperate and at their end. We certainly need greater efficiency in our healthcare systems but slashing taxes is not the proper way to control costs. I would like seeing numbers.

5) Comment by LAEMT - 14/07/2012

@elderly man. You must not get out much if you do not see this. Try going to the grocery store between the 1st and the 10th of the month and you will quickly get educated. You might also want to visit Earl K on occasion and see who is waiting to see a doctor. Maybe even try to get some statistics from EMS on how many ***** calls we run each day.

6) Comment by Elderly Man - 14/07/2012

Who are these people enjoying rib eye steaks and free medical care? I don’t see them. We live in an unbelievably poor state, even though the median per capita income is higher than that of some other states. The tax cuts the Governor Jindal pushed were ill advised and ill timed even if we do need more efficient medical systems than we now have. We ought to have reduced taxes after we reformed our delivery systems.

7) Comment by LAEMT - 14/07/2012

@JefferyD. Governor Jindal did not want to "Close Everything" as you put it. He wanted to streamline the office, cut out the high dollar unneeded extra supervisors positions and stop wasteful spending. I am assuming you must have been one of those cut positions!!

8) Comment by LAEMT - 14/07/2012

I see a ton of complaints here against the Governor but I don't see anyone with a viable solution. Why don't you ask your state congressmen and senators to finally reform welfare and get the freeloaders off of the "Free Ride". It sickens me to see people perfectly capable of getting a job living off of the government standing in line at a grocery store with rib eyes, lobster, junk food and other unhealthy food items that my tax dollars pay for. Then I see many of those same people abusing the health care system, having babies they cannot afford, calling for an ambulance for a headache or their toe hurts costing us even more money.

9) Comment by Elderly Man - 14/07/2012

Louisiana remains incomprehensible to me. One of my friends receives SSI for his disability, a real and devastating one. His disability lets him live in a small apartment with a day-care attendant for six hours a day, provides money for food. He receives some sort of medication among several; that one medication costs more than my gross monthly income. Yet, he clearly needs that care. The cost of his care is a cost of civilization. I like professional football and I know that New Orleans is a small market; however, pro football does not really merit the use of my tax dollars even though the enterprise gives me immense pleasure.

10) Comment by phil - 14/07/2012

Why are people writing comments here? The newspaper was interesting today. What was the main article at the top of the front page? It is about Brees getting a 5 year deal for $100 million. Then under it is the story about the health cuts. I am beginning to think nobody really gets it in LA. Louisiana taxpayers spend a fortune on pro football and all of those related deals in New Orleans, Brees gets $100 million, and then people also complain about health cuts. Of course, there is no relationship between the fact that we spend $millions of tax funds on football and related side deals for football and at the same time we are cutting back health services. Then I will also mention the other article in today's newspaper about CATS. I will say here that I am against the way the CATS tax was passed. However what is ironic is that Brees apparently will make more per year than this entire CATS tax debate seems to be about. Then there is the story about that sewer project in BR and how they will apparently borrow MORE money. GO FIGURE! All I can say is - I can't wait for football season to begin so I can see the Saints and LSU play again and just ignore all of these real issues. Follow the money.

11) Comment by jeffreyd00 - 14/07/2012

@tradewinns - You are missing the point here. Jindal HATES the people of this state but loves big business. If he actually cared about the people and the health system he would stop giving all the big polluters (many which make its residents sick) tax breaks and incentives for the privilege of abusing our state resources.

12) Comment by tradewinns - 14/07/2012

the federal gov. just cut their money by $859 MILLION. and these commenters do not expect cuts? what do they propose, a new or an increase in OUR taxes to cover the fed's cut? if the fed believe's the mediciad program is "fat", then the state should follow by passing on these cuts.

13) Comment by lovemykids - 14/07/2012

Add another liability to Jindal for vice president, never mind, I am sure they can put a good spin on it.

14) Comment by dday198 - 14/07/2012

“I felt strongly that the governor should make a personal call,” Landrieu said. “That, at this point, the negotiations had reached such a very high level that the only two people that could be called would be Eric Cantor or Speaker Boehner and that the most appropriate person to make that call would be the governor. But I don’t know if that call was ever made." if these fire breathing party members one of which is trying to be vp can't stop reason within their own party what good are they to louisiana?

15) Comment by dday198 - 14/07/2012

U.S. Reps. Bill Cassidy, R-Baton Rouge, and Steve Scalise, R-Jefferson, are the two members of the Louisiana delegation on the U.S. House Energy and Commerce Committee but they said they did not know about the FMAP situation until it was already in the proposal. what good are these two if they don't know what's going on in congress this huge that effects thousands of people in our state?

16) Comment by luellaesters - 14/07/2012

There can be a difference between what you and a health insurance company consider healthy. Some insurers will say that you have a health condition if you smoke, are overweight, are taking prescriptions, or had a medical condition in the past. If this describes you, you may want to search and read "Penny Health" on the web.

17) Comment by jeffreyd00 - 13/07/2012

Anyone that worked at DHH under Jindal's reign knows he wanted to close everything down then. Now that he seems to have absolute power over everything he is having his way with us. If you think crime is bad now wait till people become even more desperate due to lack of beneficial and needed services.

18) Comment by morellok2 - 13/07/2012

So our governor is out on Republican campaign trail while this monumental announcement is made. In a few years Oschner will have taken over all the LSU system healthcare and Greenstein will be running it. No consideration given to cutting out some of the coporate tax cuts to help fill in the gap to fund medicaid.