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Archive for the ‘Privatization’ Category

Bobby Jindal loves to throw around the “L-word.”

So much so that we at LouisianaVoice are beginning to let it creep into our vocabulary when writing about Bobby.

Of course, his “L-word” and our “L-word” have completely different meanings.

For him, it’s invoked when reacting to the “Liberal” media’s calling him out on his claims of being the savior for Louisiana’s health care, education, economy, ethics and general well-being.

For us, the “L-word” denotes Liar, as pathological Liar.

A pathological liar is defined as an abnormally habitual liar, or a person who lies to the point that it is considered a disease or condition. That would be Bobby Jindal, the man who took ideas from medical experts when he headed up the Department of Health and Hospitals, implemented those ideas and called them his own.

Before you get the wrong idea, we don’t reside in a dream world where the sun is always shining and the grass is always green. We know politicians lie. Former Gov. Edwin Edwards once said it went with his job.

We understand that just as we can predict that in the upcoming gubernatorial election, one of the candidates is certain to stretch the truth a bit by claiming that then-State Rep. David Vitter’s vote against tabling House Bill 1013 way back in 1993 was because he supported gay rights. http://louisianavoice.com/

Anyone who knows Vitter knows better than that (maybe hooker rights, but that’s another story for another day). His voting not to table the bill that would have made it illegal for employers or insurers to discriminate based on sexual orientation was merely an effort to keep the bill alive for full floor debate where it was certain to have been defeated.

But Bobby Jindal elevates lying to an art form At least he tries to, but his prevarications are so disingenuous as to appear laughable—except the joke is on us.

Take that letter that Jindal recently wrote to the New York Times http://www.nola.com/politics/index.ssf/2015/03/bobby_jindal_defends_his_recor.html#incart_river  in response to the paper’s editorial about governors being unable to hide from their records http://www.nytimes.com/2015/03/01/opinion/sunday/governors-can-run-but-they-cant-hide.html?_r=0 and the column about the Jindal implosion http://www.nytimes.com/2015/03/23/opinion/charles-blow-gov-jindals-implosion.html by  Times writer Charles Blow who just happens to be from the north Louisiana town of Gibsland and who was a Grambling State University honor graduate.

In that letter, Jindal repeated the claim that he had cut the state payroll by “30,000 workers.”

Liar.

The Louisiana Office of Civil Services issues monthly layoff reports and contained in that monthly report is a year-by-year accounting of the number of civil service positions eliminated and the number of employees laid off. February 2015 Layoff Report

Since Fiscal Year 2008, which began six months prior to Jindal’s taking office in January of 2008, through the end February 2015, there have been a grand total of 13,577 positions eliminated and 8,396 employees laid off. The difference is apparently 5,181 eliminated positions were already vacant and simply not filled. Taking either number, you have far fewer than half the 30,000 claimed by Jindal.

“This fiscal responsibility resulted in eight straight upgrades by the major credit agencies,” he said in his letter, while neglecting to mention that two major rating agencies, Moody’s and Stand & Poor’s recently moved the state’s credit outlook from stable to negative while threatening the more severe action of a downgrade. http://louisianavoice.com/2015/02/14/two-major-investment-rating-firms-downgrade-louisiana-to-negative-state-is-now-officially-at-the-financial-end-game/

“And what did lower taxes do for our economy? They spurred growth,” he said. “Louisiana now has higher incomes…”

Liar.

The state’s per capita income while increasing 1.1 percent from 2012 to 2013, has actually decreased overall since 2008 and continues to lag nearly $3,500 behind the national average while the median family income decreased by more than $2,500 and trailed the national median family income by more than $8,000. http://www.deptofnumbers.com/income/louisiana/

http://www.nola.com/politics/index.ssf/2012/09/louisiana_ranks_poorly_on_late.html

Were it not for Mississippi and the District of Columbia, Louisiana’s poverty rate (by household income) of 18.3 percent would be the highest in the nation. (Mississippi’s poverty rate is 20.1 percent and D.C. has a poverty rate of 20.7 percent.) http://en.wikipedia.org/wiki/List_of_U.S._states_by_poverty_rate

Moreover, our already stratospheric poverty rate is continuing to rise. http://www.labudget.org/lbp/2013/09/poverty-on-the-rise-in-louisiana/

“…more jobs…”

Liar.

The February unemployment rate for Louisiana (the latest figures available) was 6.7 percent, compared to 5.5 percent for the rest of the country. The rate was 4 percent when Jindal took office but three years into his first term, the rate had risen to 8 percent before dropping below 6 percent in 2014 and spiking again this year. http://www.deptofnumbers.com/unemployment/louisiana/

“…and more people than we’ve ever had in the history of our state.”

Perhaps, but when those who were evacuated to other states in the aftermath of hurricanes Katrina and Rita return, that does not signify population growth. That’s just folks coming home after a hiatus of a few years.

But no matter. Jindal long ago staked out his position on immigration reform. http://www.ontheissues.org/Governor/Bobby_Jindal_Immigration.htm

But while he is claiming “more people than we’ve ever had in the history of our state, he may wish to take a closer look at what the numbers mean.

Yes, it’s true that the state’s population grew by 64,396, an increase of 1.44 percent from 2000 to 2010. But the state actually lost 20,426 (-.47 percent) in the number of residents “not Hispanic or Latino origin” while registering a gain 84,822 (78.7 percent increase) in the number of people of “Hispanic or Latino origin.” http://censusviewer.com/state/LA

How’re you gonna square those numbers with your stand on immigration reform, Bobby? You can’t very boast of population growth and decry the influx of Hispanics in the face of those facts.

“A larger gross domestic product…”

Shoot, on this we don’t even beat Mississippi. Of the 12 states in the Southeast Region, our GDP barely nudges out Virginia, Tennessee, Alabama and South Carolina. http://www.bea.gov/newsreleases/regional/gdp_state/2014/gspSE_glance.htm

Back in February, Jindal told a reporter for the Christian Science Monitor that Louisiana’s higher education budget “is actually a little bit, just slightly, higher than when I took office.” http://www.washingtonpost.com/blogs/fact-checker/wp/2015/02/11/jindals-claim-that-louisianas-higher-education-budget-is-slightly-higher/

“Wait. Wha…?

LIAR!

No, Bobby, that’s a DAMN LIE!

Anyone who can make that claim with a straight face has some serious mental issues of either being unable to separate face from fantasy or of just being unable to tell the truth—even in the face of overwhelming evidence to the contrary.

Even the Washington Post, for whom he often pens his op-ed pieces when not stumping for the Republican presidential nomination, called him out on that one. http://www.washingtonpost.com/blogs/fact-checker/wp/2015/02/11/jindals-claim-that-louisianas-higher-education-budget-is-slightly-higher/

Remember when Jindal promised that premiums for the Office of Group Benefits would not increase and benefits would not decrease under his privatization plan?

Liar.

And remember how he told us that health care for the state’s poor population would actually improve and the state would save millions by jettisoning those burdensome state hospitals?

Liar.

Team Jindal moves toward developing a medical corridor along Bluebonnet Boulevard and Essen Lane in South Baton Rouge while creating a medical wasteland north of Government Street (thereby protecting medical care for the affluent population but not so much for the poorer, largely black population of North Baton Rouge). Baton Rouge General Mid City (north of Government by a couple of blocks), as part of that plan, is being forced into closing its emergency room facilities next week and there’s good reason to expect similar crises at private hospitals in Lake Charles, Shreveport and Monroe. In fact, the problems are already starting in Shreveport. http://m.apnews.com/ap/db_268748/contentdetail.htm?contentguid=6CI2I0hA

And, of course, there was Jindal’s claim of the infamous “no-go” zones in England in the face of all those apologies by Fox News for initiating the story.

Liar.

It appears Bobby made that claim purely for the sake of political expediency, the worst reason of all. http://www.cnn.com/2015/01/19/politics/jindal-no-go-zones-london/

Jindal, of course, did that major flip-flop on Common Core and is somehow managing to link the Common Core to the radical teaching of American history at the cost of something called “American exceptionalism.”

Liar.

So you’ve changed your position on Common Core. But you overlooked (deliberately, we strongly suspect) one minor detail: Common Core deals only in math and English, not history. http://www.breitbart.com/big-government/2015/02/06/bobby-jindal-what-happens-when-we-stop-teaching-american-exceptionalism-to-our-students/

Finally, there is the biggest Lie of all:

“I have the job I want.”

LIAR!

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By now, everyone who isn’t emotionally involved with Dancing with the Stars or Bachelor, is acutely aware that the state, going into the 2015 legislative session, is flirting with a $1.6 billion budget deficit.

And that doesn’t even take into consideration the growing backlog of sorely needed infrastructure repairs for state highways and universities totaling well over a billion dollars. Nor does it include previous deep cuts to health care and higher education.

Things are so bad that an increasingly desperate Bobby Jindal, running out of state buildings, vehicles and hospitals to sell or agency funds to raid, is even looking to sell the remainder of the state tobacco settlement money and the State Lottery in order to generate yet even more one-time revenue to cover recurring expenses.

And remember, this is the man who told the Monroe News-Star he was leaving the state in better shape than he found it. http://www.thenewsstar.com/story/news/politics/2015/03/13/gov-jindal-want-finish-strong/70262992/

Still, every year those non-government organizations (NGOs) make the obligatory trek to Baton Rouge with hands out, asking that legislators appropriate funding for their organizations. This year is no exception as 80 individual entities have submitted requests for funding of 89 separate projects totaling nearly $241.3 million.

Of that amount, $116 million, or 48 percent, were for NGOs in the greater New Orleans area.

Many of the requests are from the usual worthy organizations like councils on aging, youth groups and charitable organizations.

Among the larger requests:

  • $26 million for the Foundation for Science & Math Education in New Orleans;
  • $17.2 million for the Girl Scouts of Louisiana East in New Orleans;
  • $4.4 million for Kingsley House in New Orleans;
  • $1.6 million for the Louisiana Arts & Science Museum in Baton Rouge (two projects);
  • $8 million for the Louisiana Children’s Museum in New Orleans;
  • $5 million for the Louisiana Food Bank Association in Baton Rouge;
  • $4 million for the Louisiana Regional Leadership Council in Lafayette;
  • $27.7 million for a National Hurricane Museum and Science Center in Lake Charles;
  • $1.4 million for renovations to VFW Post 8852 in Alexandria;
  • $14.9 million for the North Desoto Water System in Stonewall;
  • $4.1 million for the Ogden Museum of Southern Art in New Orleans;
  • $1.2 million for Sci-Port (Louisiana’s Science Center) in Shreveport;
  • $10.7 million for repairs at the State Fair of Louisiana in Shreveport;
  • $2.1 million for Administrators of the Tulane Education Fund in New Orleans;
  • $4.3 million for Lighthouse for the Blind in New Orleans;
  • $4.9 million for the Louisiana Association for the Blind in Shreveport;
  • $3 million for the Baton Rouge Empowerment Foundation;
  • $10 million for the Gulf Coast Restoration and Protection Foundation in Baton Rouge;
  • $7 million for the Second Harvest Food Bank of Greater New Orleans and Acadiana;
  • $2 million for the New Orleans Jazz Orchestra;
  • $2.6 million for Loyola University in New Orleans;
  • $1.1 million for WYES Educational Television in New Orleans;
  • $11.8 million for University Hospital & Clinics in Lafayette (two projects);
  • $37.3 million for the Audubon Nature Institute in New Orleans;
  • $5.68 for the Biomedical Research Foundation Northwest in Shreveport;
  • $4.5 million for the NOLA Motorsports Hospitality Committee in New Orleans.

The last four warrant particular attention.

While all such organizations are barred from making political contributions because of their non-profit status, officers and members of their boards of directors are not bound by such restrictions. Jindal received $167,000, various members of the Louisiana House and Senate got $65,650, and the Louisiana Republican Party was the beneficiary of another $26,000 from seven principals connected with those four organizations.

University Hospital in Lafayette has been taken over by Lafayette General Medical Center in Jindal’s sweeping state hospital privatization scheme which raises immediate question of why the state should be funding projects at that facility.

Same for the Biomedical Research Foundation of Northwest Louisiana, which last year assumed operation of LSU Medical Center in Shreveport and E.A. Conway Medical Center in Monroe. The foundation received $5.7 million in state largesse last year.

The Audubon Institute receives millions of state dollars every year, much of which goes to the upkeep of the institute’s golf course. Last year, for example, Audubon Institute received $16.8 million in legislative appropriations.

But for sheer audacity, we give you the NOLA Motorsports Hospitality Committee. Here is its summary justifying its request for $4.5 million:

  • NOLA Motorsports Park in Jefferson Parish, through a competitive process, has been selected as the site for an INDYCAR event to be part of the championship Verizon INDYCAR Series. The selection was made, in part, because of the availability of a venue for the Event and related activities, transportation infrastructure, personnel, commitment to comply with the required specifications, and because of the collaborative relationships that have been established with other support entities. The Nola Motorsports Host Committee, Inc., a non-profit corporation, has committed to host a first-class Event and to plan and provide a unique and entertaining visitor experience for all which will include live music from Louisiana artists, regional cuisine, and demonstrations of Louisiana’s culture to enhance the visitor experiences for all participants including drivers, team owners, team supporters, corporate sponsors, family and guests, media, and other attendees; and
  • The public purpose of the Event is to provide supplemental funding to the Nola Motorsports Host Committee, Inc. to host the inaugural Indy Grand Prix of Louisiana which will support the expansion and promotion of tourism by producing an event that is projected to stimulate substantial growth in the Louisiana tourism industry, resulting in job creation and other increased economic activity, including the generation of tax revenue for state and local governments. Nola Motorsports Host Committee has secured a preliminary economic impact analysis from Formula, LLC which indicates an estimated economic impact of $27.8 million annually from the Event. INDYCAR has guaranteed a 3-year lifecycle of the Event with the goal of the Event being an annual occurrence. The goal is to attract visitors to Louisiana and to maintain awareness and a positive image of Louisiana as a unique and desirable travel destination. It is anticipated that the public benefit is proportionate to the obligations undertaken by the State. The State will receive tourism publicity and recognition for its support through verbal acknowledgements, media events, and in other related publicity associated with promoting and publicizing the Event.

But wait. Didn’t this same organization receive $4 million from the state just last year for track improvements after Jindal made a commitment to the track owners to come through with the money?

Well, yes and no.

This is where things get a bit murky.

You see, last year, when Jindal yanked a $4.5 million appropriation away from the developmentally disabled, it was to give the money to NOLA Motor Club (The NGO got $4 million, not the $4.5 it requested), a corporation that was established in September of 2009 and which remains in good standing.

This year, however, the $4.5 million request came from a corporation calling itself NOLA Motorsports Host Committee, established last June.

Both corporations listed their addresses at 11075 Nicolle Blvd. in Avondale, however, but had different officers, according to corporate records on file with the Secretary of State’s office.

But wait. There is a third entity: NOLA Motorsports established in May of 2008 and located at 2251 Drusilla Lane, Suite B in Baton Rouge. But that corporation is listed as inactive and records show its corporate status was revoked on Aug. 16, 2013.

One of the officers of NOLA Motor Club was Laney Chouest.

While Laney Chouest was listed as an officer for NOLA Motor Club, he is not listed among the officers for NOLA Motorsports Host Committee. It is nevertheless interesting to note that he, other members of the Chouest family and their many business enterprises have made $166,300 in campaign contributions since 2003. They include $43,800 to various legislators, $26,000 to the Louisiana Republican Party and $96,500 to Jindal.

What best illustrates the arrogance of that fiscally irresponsible appropriation, the thing that pushed it to the status of virtual malfeasance, is the fact that the Senate Finance Committee, taking its cue from Jindal, ripped $4.5 million from the budget for Louisiana’s developmentally disabled in order to free up the money for the racetrack. The lone dissenting vote was that of State Sen. Dan Claitor (R-Baton Rouge). http://louisianavoice.com/2014/05/26/senate-finance-committee-craters-to-jindal-rips-4-5-million-from-developmentally-disabled-for-racetrack/

But what compounds that unconscionable act was the motivation behind Jindal’s action.

The man who for his entire term of office has railed against government encroachment (see: federal stimulus funds, Common Core, medical care, prisons, etc.), obviously based his justification on political expedience and using state government to take care of his contributors.

Though Laney Chouest is not listed among the officers for NOLA Motorsports Host Committee, it is nevertheless interesting to note that he, other members of the Chouest family and their many business enterprises have made $166,300 in campaign contributions since 2003. They include $43,800 to various legislators, $26,000 to the Louisiana Republican Party and $96,500 to Jindal.

Two members of the Senate Finance Committee, Robert “Bret” Allain (R-Franklin) and Norbert “Norby” Chabert (R-Houma), received $2,500 each from Gary Chouest in 2010 and 2011.

Isn’t it interesting how a state so broke as to find itself unable to fund things like highway and bridge repair, health care, higher education, and a host of other essential services, can find $4 million for a race track, $7.7 million for golf courses across the state, $35.1 million for professional sports facilities, $10.1 million for local sports complexes, and another $3 million for baseball stadiums (including $1.4 million for a baseball stadium in Baton Rouge, when we don’t even have a team here)?

It will certainly be interesting to follow the outcome of some of these NGO requests.

Especially those last four on the list.

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There’s nothing left to be said other than to say Bobby Jindal is bat guano crazy.

The Louisiana Office of Group Benefits (OGB) was cruising along in 2011, providing virtually complaint-free quick turnarounds on medical claims for state employees, retirees and their dependents.

But then Bobby Jindal saw a way to undercut premiums in his privatization scheme which allowed the state to be obligated for less in its share of matching premiums so that Jindal could rake in some extra cash to cover his backside, aka budget deficit.

The result, as just about everyone who follows this sham of an administration knows, was that the $500 million reserve fund was all but wiped out.

Bobby Jindal, after having first jerked $40 million in funding for state colleges and universities, reversed himself again by taking $30 million from a federal hurricane recovery fund.

Bobby Jindal has shrunk the state’s rainy day fund from $730 million when he took office to $460 million and a $450 million fund to subsidize companies for investing in the state has evaporated as is the $800 million balance in the Medicaid Trust Fund for the Elderly.

And after giving away billions of dollars in tax breaks, incentives, rebates and exemptions for business and industry in an effort to spur economic development, we learned today (March 18) that Louisiana’s unemployment rate was third highest in the nation. http://www.politico.com/magazine/story/2015/02/bobby-jindal-campaigning-114948_Page2.html#.VQoeJ005Ccw

The one constant in all this is the Louisiana State Lottery, which since a 2004 Constitutional amendment has dedicated proceeds to the Minimum Foundation Formula (MFP) for public education.

Since the lottery’s approval by voters in 1990 and its implementation in 1991, the lottery, which is mandated to transfer 35 percent of proceeds to the state treasury, has contributed $2.8 billion to the state.

In 2014, sales were $450 million and $161 million of that was transferred to the state.

Also, 2014 marked the 13th consecutive year that the lottery has transferred more than $100 million to the state.

Why do we tell you all this?

Well, only because the administration of Bobby Jindal is currently entertaining the notion of selling bonds that guarantee future State Lottery profits in order to raise some $467.7 million in one-time money to help plug a $1.6 billion hole in the state budget.

Wait. What? Sell the State Lottery?

Yup.

State Treasurer John Kennedy tells LouisianaVoice that the administration is “seriously considering” two separate proposals to take over the lottery and to pay the state one time money.

The two proposals were from Wall Street banking firms Goldman Sachs and Citigroup. While Citigroup did not specify an amount, Goldman Sachs said, “Based on lottery revenue growth of at least 1.5 percent annually, the state could raise approximately $428 million and preserve a minimum contribution to the MFP of $160.2 million.” Goldman Sachs Presentation – March 2015

Citigroup Presentation – March 2015

With 13 consecutive years of receipts of more than $100 million and total receipts of $2.8 billion since 1992, $428 million in quick cash appears to be a terrible deal for the state—not that Bobby Jindal gives—or ever gave—a flying fig about this state.

Let’s first take a look back at the history of lotteries in Louisiana.

In 1868, the Louisiana Lottery Co. was authorized and granted a 25-year charter after a carpetbagger criminal syndicate from New York bribed the Legislature into approving the lottery and establishing the syndicate as the sole lottery provider.

Because it was an interstate venture, 90 percent of the syndicate’s revenue came from outside Louisiana. Because it was so profitable, when efforts were made to repeal the charger, bribes to legislators ensured the effort’s failure.

Ten years after it was approved, Louisiana had the only legal lottery remaining in the company. When Congress passed a prohibition against operating lotteries across state lines, the Louisiana Lottery was finally abolished in 1895. When it was disbanded, reports of ill-gotten gains and bribery surfaced. http://www.library.ca.gov/crb/97/03/chapt2.html

But even more worrisome are the histories of the two Wall Street banking firms who submitted proposals for taking over the Louisiana Lottery.

And even though Kennedy said Commissioner of Administration Kristy Nichols has said the lottery won’t be sold, the mere fact that two proposals for just that scenario have been simultaneously submitted by Goldman Sachs and Citigroup cannot be considered as coincidence. Both investment banking firms pointed that similar actions have been taken by Oregon, Florida, Arizona and West Virginia.

And what about the integrity and professional ethics of the two companies?

That’s a fair question, so let’s look at the records.

Goldman Sachs:

Citigroup:

So now the administration suddenly receives “unsolicited” proposals for the sale of the Louisiana State Lottery from two Wall Street banking firms with checkered backgrounds. (But admittedly, it would be difficult to find a Wall Street bank—or banker—these days that is not under a similar cloud.)

A Division of Administration (DOA) source said Bobby Jindal feels that, unlike his desire to sell the remainder of the tobacco settlement in yet another desperate effort to raise one-time revenue, he would not need legislative approval to sell the State Lottery. “We feel legislative approval would be required, but the governor apparently feels otherwise,” Kennedy said.

The State Treasurer added that he felt if Bobby Jindal does intend to sell the State Lottery, “he will wait until after the legislative session has adjourned and then direct the Lottery Corporation to take the action.”

The nine lottery corporation members are appointed to staggered terms by the governor. Kennedy serves as an ex-officio member. Three members, Christopher Carver ($2,000), Heather Doss ($1,000), and Lawrence Katz, combined to contribute $8,000 to various Jindal campaigns since 2003.

 

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Gov. Bobby’s ill-fated, self-serving decision to opt out of a Medicaid expansion for Louisiana is beginning to pay off in an ever-expanding crisis in medical care for the indigent population of Louisiana—on at least two fronts.

An occasional admission of error could go far in establishing a politician’s credibility but it is downright exasperating when this governor is so blind, so stubborn, so obnoxious, so obstinate, so pig-headed, and so disconnected that he cannot bring himself to cross Grover Norquist, the American Legislative Exchange Council, or the tea party—even when his decision endangers the health and even the lives of more than a quarter of a million of his constituents.

http://www.latimes.com/business/hiltzik/la-fi-mh-more-evidence-medicaid-20141027-column.html

Of course it was only a matter of time before the chickens would come home to roost but Gov. Bobby, Timmy Teepell, Kristy Nichols, et al, figured they would long gone and on their way to the White House before the fecal matter hit the oscillating air circulation device.

They were wrong and now they’re covered with the metaphoric filth of their own making with no one to blame but themselves.

The details of the latest developments are so horrific as to defy logic but tragically, they are true.

When Gov. Bobby decided to privatize the state’s charity hospital system (which, by the way, accounts for most of the state employee cuts he loves to crow about on Faux News, in his op-ed pieces, and speeches to his right-wing zealot faithful), he closed Earl K. Long Medical Center (EKL) in Baton Rouge.

That, of course, forced many low-income residents in the northern part of East Baton Rouge Parish to go to Baton Rouge General’s Mid-City medical center for emergency room treatments.

The only problem with that was Gov. Bobby had entered into a cooperative endeavor agreement with Our Lady of the Lake (OLOL) in south Baton Rouge. Consequently, OLOL was—and is—one of only two facilities in East Baton Rouge Parish receiving payments from the state. The other is Woman’s Hospital. Neither of the Baton Rouge General facilities (Mid-City and Bluebonnet), Ochsner Medical Center, nor Lane Memorial in Zachary received a dime from the state.

Because of that, Baton Rouge General recently announced that its Mid-City facility would cease operating its emergency room, effective March 31, because of the financial strain placed on it by the overflow from EKL.

When Gov. Bobby announced the cooperative endeavor agreement with OLOL in January of 2010, he was quite specific in saying the agreement to pay OLOL something on the order of $34 million ($14 million as per the agreement, plus the $24 million already appropriated for the LSU Medical Center which previously had trained its residents at EKL; some estimates put the state’s payments as high as $100 million) would “improve and expand access to health care services for the poor and enhance graduate medical education for Louisiana’s doctors, nurses and health care professionals.” (Emphasis ours.) http://dhh.louisiana.gov/index.cfm/newsroom/detail/88

Moreover, the cooperative endeavor agreement with OLOL says on pages 7 and 8:

  • WHEREAS, LSU is obligated by Louisiana law to provide free or reduced cost care to certain patients who qualify for such care;
  • WHEREAS, the State’s purpose of this initiative, which is recognized by OLOL and LSU, is to provide Medicaid recipients with integrated, coordinated care, management of chronic disease, improvement in access to preventive and diagnostic services for children and adults, improve recipient satisfaction with access to care and the care experience and provide the State with improved budget predictability;
  • WHEREAS, in the interest of advancing the State’s goal of improving integration and coordination of health care services for the low-income populations, and recognizing the opportunity presented by the integration of outpatient and community-based services provided by LSU, inpatient and outpatient services provided by OLOL, and a payment mechanism being made available by DHH (Department of Health and Hospitals) that integrates all services through a prepaid model, the State, OLOL, and LSU intend to participate as a coordinated care network within Medicaid as proposed by DHH;
  • WHEREAS, in order to successfully meet their respective purposes, OLOL, LSU, and the State intend to enter into this public/private collaborative whereby certain residency positions in the LSU GME (Graduate Medical Education) programs and patient care services will be relocated to the OLOL campus. (Emphasis ours.)

Click here to read the CEA.

But wait. Could there be a loophole in that agreement?

Apparently OLOL thinks so.

LouisianaVoice has learned that OLOL is taking the position that its only obligation under terms of the now infamous cooperative endeavor agreement is for residency training of LSU medical students. Apparently care for the indigent is off the (examination) table.

That should come as no surprise. After all, OLOL had already dug in its heels and had begun refusing to take indigent transfers from Baton Rouge General Mid-City’s emergency room if they were not already in the LSU system—and some, apparently, who were.

Woman’s also is refusing to take indigent patients.

Of course, it was also to the state’s advantage that OLOL and Woman’s not treat indigent patients or accept indigent transfers from Baton Rouge General because as long as those patients never see the inside of the OLOL emergency room or Woman’s treatment center, the state does not have to pay for their treatment (as in the decision to lower health insurance premium rates for state employees—not so much to help the employees as to lower the state’s premium share which in the long run only resulted in the depletion of Group Benefit’s $500 million reserve fund. Are we seeing a pattern here?).

All of which raises the obvious question: could all this be by design?

Obviously, no one would admit to any conspiracy.

But how could OLOL refuse indigent patients if it is the only facility in East Baton Rouge Parish receiving payments from the state for treating indigent patients?

Good question and the answer to that goes a long way in the decision by Baton Rouge General to shut down its Mid-City emergency room, leaving indigent patients with no apparent place to go for emergency treatment—in flagrant violation of clause in the agreement that says the state is obligated by Louisiana law to provide free or reduced cost care to certain patients who qualify for such care.” (Emphasis ours.)

Sometimes those WHEREASes can come back to bite you.

LouisianaVoice also has learned that Gov. Bobby’s latest round of budget cuts may have figured in the decision by Children’s Hospital in New Orleans to delay taking over operations of the state’s new billion-dollar University Medical Center New Orleans (UMCNO) from May 15 to at least August. http://www.umcno.org/about-us

Gov. Bobby’s budget cuts, necessitated mainly by his squirrely fiscal policies, leaves all of the LSU hospitals across the state woefully short of the funding needed to keep them open under the various agreements the state has entered into with private hospitals for their management. http://theadvocate.com/news/11751470-123/state-hospital-operators-say-jindal

In the case of UMCNO, built to replace the old Big Charity that was destroyed by Hurricane Katrina, the state is coming up $88 million short of needed funding, according to Children’s CEO Gregory Feirn.

“If the state does not restore the funding, then the state is deciding not to allow for care for the people of New Orleans, deciding not to open their state-of-the-art facility that is nearly finished and striking a crippling blow to medical education in Louisiana,” he said in a prepared written statement.

Strong words indeed, but then Gov. Bobby long ago, with his decision to opt out of the Medicaid expansion, made that decision.

Rep. Walt Leger (D-New Orleans), House Speaker Pro Tem, was especially critical of Gov. Bobby. “The budget is in such a mess,” he said. “We keep hearing from (Commissioner of Administration) Kristy Nichols that they are in negotiations to work matters out.

“We expect to operate a world-class facility that we invested a billion dollars in but now we learn that the date for Children’s Hospital to take it over has been pushed back,” he said.

State Treasurer John Kennedy, appearing on a New Orleans radio talk show, said the news concerned him. “Feirn is a very able administrator and I think they’ll be able to manage that facility better than the state could. We’ve invested and we’ve got to make that facility work. We do not have a choice,” he said. http://www.wwl.com/Garland-Is-the-University-Medical-Center-ready-to-/10773584?pid=461170

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In the seven-plus years of his administration, Gov. Bobby has pretty much had his way with the legislature in passing his so-called reform programs. The lone exception is his aborted effort to abolish the state income tax a couple of years ago.

Everything else—education reform, state employee retirement reform, privatization of the Office of Risk Management, the Office of Group Benefits, the state’s charity hospital system, rejection of Medicaid expansion, cutting funding for higher education, the sell-off of state property, and of course, all those generous corporate tax exemptions, credits and incentives for—sailed through the legislature, to borrow a phrase from my formative years, like crap through a goose.

Only the courts were able to restore some degree of sanity to the education and retirement changes.

So how has all that change worked out for the state?

Well, according to Marsha Shuler, writing in today’s Baton Rouge Advocate, the OGB reserve fund, which was already largely depleted since the privatization of that agency, has now fallen below that financial advisers believe to be a “safe” level. Those reserve funds, which were more than $500 million before Gov. Bobby’s meddling, are now at a dismal $102.8 million and at a burn rate (paying out more than it’s taking in) of $14.9 million a month (spending $1.14 for every dollar in revenue), the fund is on a trajectory of hitting less than $30 million by June 30. http://theadvocate.com/news/11705445-123/group-benefits-reserves-continue-to

The privatization of the state’s charity hospital system has resulted in a $190 million state liability to Medicaid even after the privatization deal was approved in part by the Centers for Medicare and Medicaid Services. http://www.thenewsstar.com/story/news/local/2015/01/11/hospital-decision-good-jindal-less-others/21538739/

The ripple effect of the hospital privatization has also resulted in the decision by Baton Rouge General Mid-City to close its emergency room facilities next month because of operating losses generated by the closure of Earl K. Long Medical Center which served the poor community of Baton Rouge.

But never one to pass up an opportunity to put a positive spin on bad decisions, Gov. Bobby, while taking pot shots at the Obama administration for everything from Obamacare to his Mideast policies to the threat of an imminent Islamic coup in Europe, keeps telling us (on those rare occasions when he is in the state) how wonderful things are and how Louisiana continues to outpace the rest of the nation in economic growth and business climate. http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&articleID=4156

His head cheerleader, Rolfe McCollister is right behind him, lending the influence of his publication, the Baton Rouge Business Report, to augment Gov. Bobby’s rosy proclamations.

http://www.businessreport.com/business/columns/la-makes-biggest-leap-in-forbes-rankings

But one should keep uppermost in mind that McCollister was treasurer of Gov. Bobby’s re-election campaign and as Bobby’s appointee to the LSU Board of Stuporvisors, was instrumental in securing the Pete Maravich Assembly Center for that prayer rally attended by about 3,500 people in the spacious 18,000-seat arena.

But let’s look at the latest survey, one which Gov. Bobby undoubtedly will ignore as he traipses about Iowa, New Hampshire and South Carolina in search of enough commitments to get him to even register in polls of likely Republican presidential contenders.

24/7 Wall St. is a corporation which runs a financial news and opinion company. The company publishes up to 30 articles per day which are published throughout the world.

Its latest survey, issued today (Feb. 27) puts Louisiana at the very bottom of its list of the Best and Worst States for Business. http://247wallst.com/special-report/2015/02/26/the-best-and-worst-states-for-business/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=FEB272015A&utm_campaign=DailyNewsletter

That’s right, Mississippi no longer owns the anchor spot in 24/7 Wall St.’s multitudinous surveys of things good and bad. This one belongs to Louisiana.

Here’s what the survey says about Louisiana:

  • No state fared worse on 24/7 Wall St.’s business climate Index than Louisiana. The state is not the worst place to run all businesses, however. The manufacturing sector accounted for more than 20% of Louisiana’s economic output in 2013, the fourth highest such contribution in the country. Despite the strong sector, Louisiana generally provides poor conditions for business.
  • Nearly one in five residents lived in poverty in 2013 — nearly the worst rate in the nation — contributing to both the low quality of the labor force as well as a low quality of life in the state. The working-age population was projected to decline by 3.2% from 2010 through 2020, one of the worst declines in the nation. While nearly 30% of Americans had at least a bachelor’s degree as of 2013, only 22.5% of Louisiana adults had at least such a degree, also nearly the lowest rate. Poor education contributed to poor scores in innovation. The state was one of only a handful of states where the average venture capital investment was less than $1 million.

There were several factors that went into the evaluation of the state’s lowly status as a place to do business:

  • The state’s gross domestic product growth of 1.3 percent was 17th lowest in the nation;
  • Average wages and salaries of $44,828 were 23rd lowest;
  • The percentage of adults with bachelor’s degrees was 5th lowest at 22.5 percent;
  • The 395 patents issued to residents were 13th lowest;
  • The negative 3.2 percent projected working-age population growth was 13th lowest.

The survey also noted that Louisiana ranked:

  • 47th in infrastructure;
  • 48th in the quality of life (the lack of adequate health care for many could be a factor in that statistic);
  • 49th in labor and human capital

Mississippi? As far as Louisiana and Gov. Bobby are concerned, that state is up there in the stratosphere at only the 4th worst in the nation.

Rounding out the bottom five were West Virginia (49th), Kentucky (48th), and Alabama (46th).

The five best, in order, were Utah, Massachusetts, Wyoming, South Dakota and Delaware, according to the survey.

Iowa and New Hampshire ranked 12th and 14th, respectively, which may help explain why Gov. Bobby spends so much time in those places instead of the state that he was elected to govern.

Nah.

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