Federal health officials signed off on two of the four financial commitments that support the public-private partnership between LSU and Our Lady of the Lake Regional Medical Center, the state announced Wednesday.
The approvals guarantee extra Medicaid funding for inpatient care of the poor and uninsured treated at Our Lady of the Lake Regional Medical Center.
The funding is over and above what other area hospitals receive.
The Lake became home for LSU’s medical education program and in-patient care that had been delivered at the public Earl K. Long Medical Center in north Baton Rouge.
Kathy Kliebert, the state’s health chief, announced the approval by the federal Centers for Medicare and Medicaid Services, in a late Wednesday afternoon news release.
“These are essential components of the public-private partnership aimed at providing care to thousands of Baton Rouge-area residents,” Kliebert said.
She said the CMS action “paves the way for further approvals down the road” on other changes required in connection with the privatization of other LSU hospitals.
Still pending CMS approval are two changes dealing with Medicaid funding of out-patient care. The Lake took over operation of LSU’s out-patient clinics and an urgent care center as part of the deal.
A different CMS team is reviewing the outpatient applications for changes, said Olivia Watkins, spokeswoman for the state Department Health and Hospitals. “We should have approval shortly,” she said.
The CMS action approved what are called “state plan amendments,” making changes in the state’s Medicaid financing setup.
The first such amendment provides a base payment of 95 percent of allowable Medicaid costs to the Lake for inpatient hospital services.
The second amendment provides a supplemental Medicaid payment to the Lake “to encourage them to take over the operation and management of state-owned and operated hospitals that have terminated or reduced services.”