Archive for the ‘Contract, Contracts’ Category

Imagine your dentist boss comes to you with a proposition:

Why don’t you help the board investigator do investigations for the board of dentistry? You can make some extra spending money by posing as a patient and presenting fake symptoms and false medical histories in hopes of gaining information and diagnosis that could be used against dentists in board hearings. The board can really use your help in putting the bad guys away.

What could go wrong, right? Your boss is a long-time member of the Louisiana State Board of Dentistry. He assures you this is done all the time. He even nicknames you “The Pink Panther” for your investigative efforts. Your thoughts go to all the extra money you will have for Christmas gifts this year.

A similar scenario happened with Karen Moorhead when she worked as a dental assistant for Dr. White Graves, a long-time board member, in Monroe. Moorhead testified that she worked “six or seven” undercover operations for board investigator Camp Morrison. She even testified to working undercover as an employee in an office that was under investigation by the LSBD.

The only problem is that no one told Ms. Moorhead what she was doing was against the law. Louisiana requires anyone getting paid to do undercover investigations have a valid private investigator’s license. Anyone caught doing this type of work without one is in violation of Louisiana criminal law, subjecting the offender for fines of up to $10,000 and up to a year in jail.

R.S 37:3507.2


It shall be unlawful for any person knowingly to commit any of the following acts:

(1) Provide contract or private investigator service without possessing a valid license.

(2) Employ an individual to perform the duties of a private investigator who is not the holder of a valid registration card.



Ms. Moorhead has found herself a defendant in an ongoing civil trial since 2011 because of this highly questionable and unethical, if not illegal, activity. Instead of hiring an independent attorney, she relied on the attorney provided by the board of dentistry, the very organization that got her in trouble in the first place. In fact, the board had the legislature change the law in order to cover her defense. She now claims attorney-client privilege with the Louisiana Attorney General’s office, and claims insurance coverage underwritten for state civil service employees. Never mind that Moorhead was an independent contractor doing work for a board contractor. Morrison’s contract specifically required him to hold an errors and omissions (E&O) insurance policy for such purposes that indemnifies the state against his actions. One former board member contends that the LSBD has spent over $500k on this suit. (Any state employee who is the subject of a civil lawsuit for actions taken in the scope of his or her employment is entitled to legal representation provided at the state’s expense. In the case of criminal prosecution for job-related actions, the employee may retain legal counsel of the employee’s choice and is entitled to have those legal costs reimbursed in the event of an acquittal. Moorhead, as a contractor, should not be entitled to legal representation provided by the state.)

More troubling, however, is the advice that her attorney has given her. The attorney Professional Rules of Conduct prohibit representing multiple clients when a conflict of interest exists between them. Barbara Melton, law partner to infamous Jimmy Faircloth, is a contract attorney for the board of dentistry—and she is defending both board investigator Camp Morrison and Moorhead at the same time. According to some legal analysts, that’s a major conundrum. One legal expert laid it out like this, “It’s apparent that Moorhead and Morrison may not share the same best interests. If I was hired to do a completely illegal job and was told that it was legal by supposedly reputable people and then found myself sued over it that would be a problem. I wouldn’t hesitate to sue the investigator, the board of dentistry, and possibly the boss that suggested the employment and got me into this mess in the first place.”

However, that’s not the advice that Melton seems to have given her. How could she recommend suing the board of dentistry and Morrison, who are both her clients? That recommendation should be off the table. Because of this conflict and lack of sound advice, Moorhead could find her troubles just beginning.

Several dentists have come together and are planning to file a civil class action suit against the Board of Dentistry and its agents. Moorhead’s involvement in “six or seven” cases, makes her the glue that ties this class action together. Moorhead may also have perjured herself in at least one deposition and during a board hearing. Finally, a recent affidavit from a Kenner dentist and Camp Morrison’s own billing records have Moorhead working undercover in an office that the board was investigating.

Although Moorhead originally bragged about working in this office, her story has changed and she remembers seeking but never being offered the job. This stands in stark contrast to the affidavit and billing records in hand. It’s possible that Moorhead may now risk jail time for perjury and continued ligation from multiple sources. She may have also committed tax fraud by not properly listing the income from these undercover jobs. Many believe the trouble Moorhead may be facing stems from the questionable legal advice she has been given. Meanwhile, the board attorney Barbara Melton has never missed a paycheck. She continues to represent the board of dentistry as a contract attorney.

Moorhead may want to check on her legal options, which some insist should include possibly adding her attorney to the list of people to sue. Moorhead certainly doesn’t appear to be innocent of the claims against her. But instead of stopping and ceasing to dig, her attorney appears to have helped her dig the hole deeper. It now appears to be one which she may not be able to escape.

The question must now be where the Attorney General’s office is in all this mess.

Buddy Caldwell is quick to issue press releases about child porn arrests, consumer fraud and CNSI. But he has been shamefully silent on the issue of going after offending power-mad, ego-driven Board of Dentistry members. These members have repeatedly demonstrated their intent to persecute dentists not in response to legitimate complaints but pursuant to board-initiated complaints generated by investigators and legal counsel. There is more than ample evidence to show that the board is set not on cleaning up the industry but in extracting hundreds of thousands of dollars from dentists denied the opportunity to properly defend themselves before a kangaroo court comprised of the same board members who bring the charges.

And while the attorney general’s job is to represent state agencies, he could be doing the board a service by offering his counsel to refrain from tromping on dentists’ due process rights. After all, should a class action lawsuit ensue, it’s going to cost the state a boatload of money to defend—and to pay any adverse judgment if that is the result. For no other reason than preventive maintenance, Caldwell should be offering his advice.

What has transpired thus far comes nowhere near the concept of due process. An attorney general committed to doing the job he was elected would have addressed this glaring problem long ago.


Read Full Post »

By numerous accounts, the Louisiana State Board of Dentistry has allegedly operated like a crime syndicate for at least two decades and is responsible for the possible harassment, extortion, money laundering, and fraud of its agents. These allegations have been made for years but may now be proven. State and federal criminal charges are expected in the upcoming months. At least one legal expert expects federal racketeering laws to be used to prosecute former board agents, and possibly even current or former board members and staff. A paralleling class-action civil suit may not be too far behind.

The board investigator was employed by the LSBD for over two decades until his contract was recently terminated. He roamed the state, under color of law, harassing dentists and beating the bushes to generate revenue. Not surprisingly, he had state contracts that allowed him to self-generate his own fees. He seemed to be aided by the board general counsel, who often served in dual capacity as board counsel and board prosecutor, a violation of legal ethics rules and common sense. Because he only had a duty to his client the board of dentistry to act in its best interest, anyone that he prosecuted was denied due process. The same would be true if a police force handled its own prosecutions without an independent prosecutor; there would be no fundamental perception of fairness. He has also been known to hide behind the cloak of administrative law in denying defendants’ rights afforded under the US Constitution. He self-generated his own fees, and had apparently selfish financial motives for seeing dentists prosecuted. In 2012, he was found by the Louisiana 4th Circuit Court of Appeals to have violated the due process of a Louisiana dentist. This investigator and attorney were perhaps given cover by a few complicit board members and staff to carry out their harassment and extortion schemes.

The investigator has employed unlicensed investigators for years in what many have deemed elaborate entrapment schemes. His undercover operations sent in phony patients to dental offices, often complaining about fake symptoms and giving false medical histories. This was done for the purpose of collecting information to be used against dentists being investigated by the board for prosecution. At least one woman used in this capacity has even perjured herself under oath. The same unlicensed investigator that initially claimed under oath to have worked 6-7 investigations and even bragged about working in a dental office that was being investigated. Although she seems to have developed amnesia and has recanted previous testimony, she now claims she has only worked one or two investigations and applied-for but never actually worked in an office undercover. However, a Kenner dentist has issued a sworn affidavit saying that she indeed held employment in HIS office during the time the board was investigating complaints against him. Conducting investigations without a license is a violation of Louisiana law and carries a maximum penalty of one year in jail and up to a $10,000 fine. The dental board has been no help in getting to the truth. An unnamed state official recently stated “The board of dentistry has circled the wagons and is being uncooperative with our investigation.”

It is believed that the investigator has been utilizing these undercover investigators for decades, but he denies that claim. He has testified that the first time he did this was in 2007, although there are numerous contradictions to this testimony. One dentist claims he sent in an undercover operative into his office in 2006. When it was realized that He had broken the law in his investigation, the Louisiana Attorney General’s office stepped in to stop the investigation and future prosecution. The current board president acknowledged in a hearing that these undercover ops have been used for years by the dental board in their investigations. One former board member, that held his board position for almost 30 years, testified that the board has been doing this since “before I was born.” Based on his appearance, one might estimate that to be around the turn of the last century.

The investigator is currently under investigation by the PI board for utilizing unlicensed investigators. The Louisiana State Board of Private Investigator Examiners opened an investigation into his illegal activity and the scope exploded because of major criminal implications. The LSBPIE pulled in other state and federal agencies once it realized that he perjured himself, filed fraudulent reports with the board, created false scenarios that were used to prosecute dentists, and even submitted multiple fraudulent billing records to the state of Louisiana. These tactics have also gotten the investigator and two of his unlicensed investigators into trouble in a civil lawsuit. Not surprisingly, the board of dentistry purportedly misled the legislature into changing the law to cover the legal expenses of both the investigator and the unlicensed investigators being sued for entrapment. By one former board member’s account, the board of dentistry has spent over $500K defending the investigator, who was a state contractor, and two unlicensed investigators he hired as his “independent contractors”; this despite the fact that his contract held a specific clause requiring him to carry an insurance policy that indemnifies the state against such lawsuits. All three defendants claim to be utilizing insurance coverage earmarked specifically for Louisiana civil service employees, The legal defense of these defendants, although they have clearly broken the law, is being funded by the tax dollars of Louisiana citizens.


The attorney also finds himself in hot water with the Louisiana Bar and recently had his contract with the board terminated. He had a complaint turned into the Louisiana Attorney Disciplinary Committee for violating a dentist’s due process. This fact can’t be denied after a decision by a Louisiana appeals court in Haygood v. LSBD. In the aforementioned case, the board general counsel acted in the role of “independent counselor,” a role that requires neutrality and separation from the board. This independence isn’t possible since he was the board’s general counsel. He used his position to antagonize, harass, and control the board hearing to ensure a favorable verdict for the board of dentistry. Such tactics are the very reason that the LSBD has NEVER lost a board hearing. In his response to the bar complaint, he noted that he simply served in the capacity of independent counsel, and that he took NO part in the investigation or the deliberations. However, according to his own billing records, eye-witness testimony, and emails, both responses are demonstrably false. He was actively involved in the investigation from the onset, and even recommended fines and penalties that were harsher than what the disciplinary panel wanted to levy during deliberations. He is awaiting a hearing by the Bar, and one legal analyst predicts he may be disbarred or not allowed to practice administrative law for an extending period of time.

The next few months will prove crucial as investigations continue and indictments are issued. One dentist predicts the investigator will be the first to fall, but will not go down alone. He appears extremely bitter about his recent departure from the board and the way he was let go after two decades of service. According to a former board member, a long-time board employee recently left the board because of the egregious acts committed by the board over the last several years. These acts are believed to have been documented and turned over to state authorities in their criminal investigation. This allegedly includes information about a board employee that destroyed evidence in the case of a medical doctor that was harassed by dental board agents. This same employee has testified to working an undercover op, posing as a patient in a Lafayette dental office under investigation. Finally, it is believed this employee may have committed payroll fraud, as it is believed she was clocked in at the board of dentistry while she was attending college classes and finishing up her degree. The truth of these apparent criminal acts, stands in stark contrast to board president’s story that former board employee left because of the impending move of the board office to Baton Rouge that will occur in 2017.

Louisiana dentists that believe they have been unfairly targeted or prosecuted are beginning to ban together to file a joint civil action against the board and these agents.

The Power Broker

Barry Ogden ruled the Louisiana State Board of Dentistry with an iron fist for over two decades, armed with a complicit general counsel and a rogue investigator. The three men were nicknamed the “un-holy trinity” by those observers that followed their trail of tears. In the 2014 legislative session, state senator Martini introduced and passed legislation, with the goal of curbing these abuses.


Ogden has recently testified to the abuses of power, lack of transparency, and due process violations that took place under his watch. Anyone committed to justice and fairness should be alarmed.  Anyone fined or punished under these men should take notice. According to Ogden, your constitutional rights were probably violated, although he doesn’t actually come out and say it. Nevertheless, it’s hard for him to hide the big, giant pink elephant in the room. But he thinks you are probably “making a mountain out of a mole hill.”

Ogden, known for his fashionable footwear, kicks caution to the wind and plays fast and furious with laws he doesn’t seem to understand, he misinterprets, or chooses to ignore out of convenience. Ogden discusses:

  • How he ignored the internal rules the board set up to help avoid violating someone’s due process.
  • How the disciplinary oversight committee operates from a set of secretive, evolving rules.
  • How investigations require no due process, and “whatever happens, happens.”
  • How the board has no need for burden of proof through informal or Bertucci hearings (which are a waste of time in his opinion)
  • How a burden of proof  is only required in formal hearing, which the board NEVER loses
  • How the board has a system of informal hearings, where 3 dentists vote and Ogden and the president may choose to override when they are sure they have gotten it wrong or don’t understand the issue.
  • How Camp Morrison has utilized unlicensed investigators for years, a violation of state law, and considered an entrapment scheme by many.
  • How Morrison’s job is to “do justice” and “there is no need for truthfulness in an investigation.”

These are just a few of the hits. Ogden continuously serves and volleys with the truth like he has played in more than his fair share of ping pong matches. But that’s a story for another day. He reveals some interesting facts about a certain board member that had dementia, the rifts between the LSBD and the LDA, and the fact that the LSBD should have no deference over fee disputes.  Ogden claims, “We only got complaints on advertising from other dentists who was just siccing a dog on a competitor.”

If you or anyone you know believe they have been the recipient of these malicious schemes, please contact boardclassactionsuit@gmail.com and share your story.



Read Full Post »

In a state drowning in consulting contracts, what’s one more?

Bobby Jindal is a lame duck governor who long ago set his sights on bigger and better things. He has abdicated every aspect of his office except the salary, free housing and state police security that go with the title. In reality, he has turned the reins of state government over to subordinates who are equally distracted in exploring their own future employment prospects.

His only concerns in almost eight years in office, besides setting himself up to run for President, have been (a) appointing generous campaign donors to positions on state boards and commissions and (b) privatizing state agencies by handing them over to political supporters.

To that end there has been a proliferation of consulting contracts during the Jindal years. The legislative auditor reported in May that there were 19,000 state contracts totaling more than $21 billion.

So as his term enters its final months and as Commissioner of Administration Kristy Nichols has less than a month before moving on to do for Ochsner Health System what she’s done for the state, what’s another $500,000?

LouisianaVoice has learned that Nichols signed off on a $497,000 contract with ComPsych Corp. and its affiliate, FMLASource, Inc. of Chicago, to administer the state’s Family and Medical Leave Act (FMLA) program. FMLA CONTRACT

It is no small irony that Nichols signed off on the contract on May 19, less than two weeks after the legislative auditor’s report of May 6 which was highly critical of the manner in which contracts are issued with little or no oversight.

The latest contract removes the responsibility for approving FMLA for state employees and hands it over to yet another private contractor.

Apparently FMLA was just one more thing the Jindal administration has determined state employees are incapable of administering—even though they have done so since the act was approved by Congress in 1993.

Because no state employees stand to lose their jobs over this latest move, the contract would seem to simply be another consulting contract doled out by the administration, obligating the state to more unnecessary expenditures.

Whether it’s farming out the Office of Risk Management, Office of Group Benefits, funding voucher and charter schools, or implementing prison or hospital privatization—it’s obvious that Jindal has been following the game plan of the American Legislative Exchange Council (ALEC) to the letter. That plan calls for privatizing virtually every facet of state government. If you don’t think the repeated cuts to higher education and health care were calculated moves toward ALEC’s goals, think again.

The contract runs from May 17, 2015 through May 16, 2016, and the state agreed to pay FMLAServices $1.45 per state employee per month up to the yearly maximum of $497,222.

Agencies for which FMLAServices will administer FMLA include the:

  • Division of Administration;
  • Department of Economic Development;
  • Department of Corrections;
  • Department of Public Safety;
  • Office of Juvenile Justice;
  • Department of Health and Hospitals;
  • Department of Children and Family Services;
  • Department of Revenue;
  • Department of Transportation and Development.

The legislative auditor’s report noted that there is really no way of accurately tracking the number or amount of state contracts. STATE CONTRACTS AUDIT REPORT

“As of November 2014, Louisiana had at least 14,693 active contracts totaling approximately $21.3 billion in CFMS. However, CFMS, which is used by OCR to track and monitor Executive Branch agency contract information, does not contain every state contract.

“Although CFMS, which is a part of the Integrated Statewide Information System (ISIS), tracks most contracts, primarily Executive Branch agencies use this system. For example, Louisiana State University obtained its own procurement tracking system within the last year, and most state regulatory boards and commissions do not use CFMS (Contract Financial Management System). As a result, there is no centralized database where legislators and other stakeholders can easily determine the actual number and dollar amount of all state contracts. Therefore, the total number and dollar amount of existing state contracts as of November 2014 could be much higher.”

The audit report also said:

  • State law (R.S. 39:1490) requires that OCR (Office of Contractual Review) adopt rules and regulations for the procurement, management, control, and disposition of all professional, personal, consulting, and social services contracts required by state agencies. According to OCR, it reviews these types of contracts for appropriateness of contract terms and language, signature authorities, evidence of funding and compliance with applicable laws, regulations, executive orders, and policies. OCR also reviews agencies’ procurement processes against competitive solicitation requirements of law. The contracting entity is responsible for justifying the need for the contract and conducting a cost-benefit analysis if required.
  • However, state law does not require that a centralized entity approve all state contracts.
  • According to the CFMS User Guide, OCR is only required to approve seven of the 20 possible contract types in CFMS. The remaining 13 types accounted for 8,068 contracts totaling approximately $6.2 billion as of November 2014. Exhibit 2 lists the 20 types of contracts in
  • CFMS and whether or not OCR is required to approve each type, including the total number and dollar amount of these contracts.
  • In fiscal year 2014, 72 agencies approved 4,599 contracts totaling more than $278 million.

The Office of Contractual Review was since been merged with the Office of State Procurement last Jan. 1.


Read Full Post »


We couldn’t resist this one from our favorite cartoonist. (CLICK ON IMAGE TO ENLARGE)

The timing could not have been better—or worse, depending upon your perspective.

But all things considered, Wednesday was a bad day for a certain Louisiana governor flailing away in a doomed quest for the Republican presidential nomination.

If he posed so much as a remote threat against any of his Republican opponents for the Republican presidential nomination, today’s events would surely be used against him in an campaign ad blitz. But he doesn’t and they won’t.

On the one hand, there was the survey released Wednesday (Sept. 24) by 24/7 Wall Street, the service that publishes all sorts of survey results from the best-selling cars to the worst-performing state governments. The latest survey shows Louisiana to be the fifth worst-educated state in the nation.

On the other, there was the story, also on Wednesday, that said Louisiana’s public colleges and universities have been told to “be prudent” with their current budgets—a not-so veiled way of saying get ready for more budget cuts.

The U.S., in case you haven’t been paying attention, has some of the most expensive college educations in the world—and the expenses have risen to record highs, the survey said. In fact, the cost of a college education has increased faster than the rate of inflation—24 percent just since 2012,

Only 22.9 percent of adults in Louisiana hold at least a bachelor’s degree, which ranks 46th in the nation and well below the national average of more than 30 percent. That puts the state two notches behind Alabama’s 23.5 percent and ranked higher than only Kentucky (22.2 percent), Arkansas (21.4 percent), Mississippi (21.1 percent), and West Virginia (19.2 percent). Massachusetts had the highest with 41.2 percent of its adults having attained at least a bachelor’s degree.

In fact, Louisiana ranks just ahead of our next door neighbor in so many surveys that rumor has it there may be a bill introduced in the next legislative session to change the state’s motto from “Union, Justice and Confidence” to “Hey, At Least We Aren’t Mississippi.”

Louisiana had the fourth lowest percentage (83.6 percent) of high school graduates.

Louisiana also ranked seventh lowest with a median household income of $44,555 in 2014 and even those among the 22.9 had the seventh lowest median earnings ($46,903) for bachelor degree holders. Even more depressing is the fact that the median income for holders of bachelor’s degrees managed to pull the overall median average up by less than $2,500 per year.

Nearly one in five Louisianians live below the poverty line, the third highest poverty rate in the nation. This, in a state with three of the 10 busiest ports in the nation (including the busiest, the Port of South Louisiana, and the 4th and 10th busiest, New Orleans and Baton Rouge) and three of the nation’s largest refineries (Marathon in Garyville, Exxon in Baton Rouge, and Citgo in Lake Charles).

Moreover, the state is embarrassingly rich in chemical plants, oil and gas reserves, sulfur, agriculture and seafood. But still we consistently lag behind the rest of the nation in every conceivable measure of progress and prosperity.

And yet, here we are, teetering at the edge of yet another midyear budget shortfall, or as State Treasurer John Kennedy said, “We have hit the trifecta, but not in a good way.” He was talking about the news that we have just learned that we’re going to have to make up for last fiscal year which ended June 30 with a deficit (though Bobby Jindal and Commissioner of Administration Kristy Nichols won’t say how much). Together, Kennedy said, the combined shortfalls for last fiscal year and the current year combine to paint a bleak picture for next year as well, as the combined deficit is expected to approach $1 billion.

(Note to Kristy: Don’t let the door hit you on the backside as you exit next month on the way to grab your golden parachute with Ochsner Health System.)

Though the Jindal administration isn’t saying much about the latest crisis (you have to wonder how Bobby will spin this in his fiscal responsibility message on the GOP presidential campaign trail), Kennedy at least doesn’t duck the issue. He estimates it to be more than $100 million.

This budgetary news comes on top of the Medicaid shortfall of more than $300 million, a TOPS fund which is projected to be $19 million short and word that Jindal’s ill-fated hospital privatization plan has hit yet another major setback.

LSU, citing a breach of the public purpose, terminated its cooperative endeavor agreement with the Biomedical Research Foundation of Northwest Louisiana (BRF) barely two years after the foundation took over operation of two north Louisiana hospitals.

Saying all avenues to resolve differences had been exhausted, LSU President F. King Alexander said that Academic Health of North Louisiana Hospital Management Co., Inc., will take over operation of University Health Shreveport and University Health Conway.

It was so bad for Jindal that he missed a golden opportunity when the Pope spoke to a joint session of Congress on Wednesday.

When President Obama visited New Orleans on the 10th anniversary of Hurricane Katrina last month, Jindal sent a message asking that the President not talk about climate change when he came here. But when he had the opportunity to offer that same advice to Pope Francis, Jindal, a Roman Catholic, remained mute.

Perhaps he was just too busy traveling around Iowa telling anyone who would listen (that would be Timmy Teepell and Kyle Plotkin) what a great job he has done as governor of Louisiana and how he is uniquely qualified to run the country.

We are reminded of the Winston Churchill quote about Clement Atlee that could be adapted so easily to our governor: An empty taxi pulled up in front of the Iowa caucus and Bobby Jindal got out.

Read Full Post »



“No former elected official, including a legislator, no former member of a board or commission, nor agency head for two years shall assist another person for compensation in connection with a transaction, or render service on a contractual basis for or be employed/ appointed to any position involving the agency by which he or she was formerly employed or in which he/she formerly held office.” (LA Rev Stat § 42:1121)

“…Kristy Nichols is leaving the public sector to become Ochsner Health System’s vice president of government and corporate affairs, the Jindal administration announced today.” (Baton Rouge Business Report, Sept. 15, 2015)

So Nichols will be going to work for Ochsner as a lobbyist. And while state law precludes her lobbying the legislative or executive branches for two years, there appears to be no prohibition to her lobbying local governments (parishes and municipalities) on the part of Ochsner.

Kristy, anticipating the end of her boss’s rocky tenure in January, found her own golden parachute at Ochsner. We don’t know her salary at Ochsner, but we’re guessing it’ll be six figures. Taken at face value, that would normally be the end of the story.

But with this gang, there’s always more than meets the eye. And thanks to our friend C.B. Forgotston who helped us connect the dots, we’re able to shed a little more light into how she parlayed three years of repeated budget crises into such a high-profile private sector job.

Remember the great state hospital privatization fiasco and the contract with 50 blank pages? http://www.modernhealthcare.com/article/20130602/INFO/306029998

The contract obligated the state to long-term spending obligations that will extend decades beyond the Jindal years. Let’s ignore for the moment the fact that the Center for Medicare and Medicaid Services has yet to approve the deal. Instead, let’s explore the Nichols-Ochsner connection.

It was two years ago that the LSU Board of Supervisors signed off on that contract to hand over operation of state-owned hospitals in Lake Charles, Houma, Shreveport and Monroe. The blank pages were supposed to have contained lease terms. Instead, the LSU board left those minor details to the Jindal administration (read: Commissioner of Administration Kristy Nichols).

Eventually details about the contracts emerged, including that of the Leonard J. Chabert Medical Center in Houma. And, thanks to the Louisiana Public Affairs Research Council, that is where we’re able to bring the picture into focus.

Leonard Chabert Medical Center was opened in 1978 as a 96-bed facility with 802 employees but by the time it was privatized, it was down to 63 beds.

In 2008, a hospital-based accredited Internal Medicine residency program was begun. In 2011, the hospital’s revenue was 47 percent uncompensated care for the uninsured, 29.5 percent Medicaid, 13 percent Medicare, 5.5 percent state general fund and 6 percent interagency transfer from other departments with only 1 percent being self-generated.

When the Jindal administration moved to unload state hospitals, Chabert was partnered with Southern Regional Medical Corp., a nonprofit entity whose only member is Terrebonne General Medical Center (TGMC).

TGMC was slated to manage Chabert with assistance with a company affiliated with (drum roll)…..Ochsner Health System, Louisiana’s largest private not-for-profit health system with eight hospitals and 40 health centers statewide.

So what were the terms of the agreement? Five years with an automatic renewal after the first year in one-year increments to create a rolling five-year term.

Though Southern Regional is not required to pay rent under terms of the agreement, the Terrebonne Parish Hospital Service District No. 1 is required to make annual intergovernmental transfers of $17.6 million to the Medicaid program for Southern Regional and its affiliates. Here are the TERMS OF THE OCHSNER DEAL AT LEONARD CHABERT MEDICAL CENTER

Here’s the kicker: the cooperative endeavor agreement (CEA) calls for supplemental payments of $31 million to Ochsner. It’s no wonder the Houma Daily Courier described the deal as “a valuable asset to Ochsner’s network of hospitals” and that the deal “expands Ochsner’s business profile.”

Between 2009 and 2013, Ochsner’s revenue doubled from $900 million to $1.8 billion and the deal only means more revenue for Ochsner, the Daily Courier said. http://www.houmatoday.com/article/20140325/articles/140329692?p=3&tc=pg

We’re certain it’s just coincidence that the LSU Board signed off on a blank contract that the Jindal administration would fill in after the fact.

And it’s just by chance that Kristy Nichols, as Commissioner of Administration, was responsible for that task.

And of course it was just happenstance that Ochsner received that $31 million payment and a mere two years later, just as her reign at DOA was ending, saw the need to bring Kristy aboard as vice president of government and corporate affairs.

So there you have it. All you have to do is follow the money.

Read Full Post »

Older Posts »


Get every new post delivered to your Inbox.

Join 2,976 other followers

%d bloggers like this: