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LA officials fight over New Orleans hospital plans

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Disagreements over the future of the Louisiana healthcare system temporarily came to a halt yesterday, when Gov. Kathleen Blanco and U.S. Sen. David Vitter agreed to begin planning for a new teaching hospital in downtown New Orleans. Vitter and Blanco intend to give Louisiana State University an initial $74 million to buy land and hire architects, the first steps in the building process. Gov. Blanco expects to give LSU another $226 million in federal money, once the school has developed a business plan describing how they'd run the hospital. The move is something of an end-run around some major obstacles; the state senate just last week rejected a plan to give LSU $300 million in federal block-grant financing.

This truce, however, may be short lived. Despite agreeing to the initial funding, Vitter is against giving LSU the additional $226 million, unless Blanco and her team agree to redistribute $1 billion in state and federal Medicaid dollars currently used for the state's charity hospital system. Vitter and others would like to see at least some of the Medicaid money go to private insurance vouchers, giving patients the chance to go to any facility. (Right now indigent patients must seek their care through the Charity system.) Gov. Blanco, for her part, says the insurance approach is too expensive to work without a big infusion of federal cash. She told the new hospital "will play a significant role in our efforts to redesign Louisiana's healthcare system."

For more information on the hospital controversy:
- read this piece from The Times-Picayune

Related Articles:
LA charity system saves millions with disease management. Report
LA leaders debate future of LSU charity system. Report
Report finds Louisiana hospitals "unsalvageable." Report
New Orleans health plan costs mount. Report

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This is another waste of the taxpayers' dollars. Is this another attempt to re-populate New Orleans, a place where no one really wants to live? We do not need another medical school in this country much less in a city that is so bankrupt from every perspective. The governor of Louisiana along with the mayor of New Orleans have more than demonstrated their incompetence, during and post Katrina. I guess just like the Army General replied to very ignorant questions from the media during the initial rescue and recovery in New Orleans: "I guess you are stuck on stupid." Because this sure looks like another stupid move by the Feds to give money to one of the most inept governors in the country.

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