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Archive for March, 2012

The Department of Health and Hospitals (DHH) has been a state agency abuzz with commotion this week—commotion that more closely resembles Larry, Moe and Curly trying to shovel water with a pitchfork than productive activity.

And it’s all part of the Bobby Jindal School of Good Government.

Martha Manuel has been Teagued and DHH has retreated for the moment from its efforts to put 69 information technology (IT) employees out of work in favor of contracting its services to the University of New Orleans (UNO).

Manuel, 63, was fired from her position as executive director of the Office of Elderly Affairs on Wednesday just one day after testifying against the transfer of her agency to DHH.

What’s more, the firing was done by her supervisor Tammy Woods, Director of Community Programs—by telephone.

If the pattern seems familiar, that’s because it is—beginning back in October of 2009 when Melody Teague, a Social Services grant reviewer, was fired one day after testifying against Jindal’s program to streamline government.

It took her six months but she got her job back but then last April 15, her husband Tommy Teague was fired as executive director of the Office of Group Benefits (OGB) when he didn’t jump on board the Jindal Privatization Bandwagon quickly enough, particularly when it came to the agency he had taken from a multi-million-dollar deficit to a $500 million surplus.

Thus the term Teagued.

Those were just two. Others included a Board of Elementary and Secondary member who didn’t kowtow to Jindal, the director of the Highway Safety Commission who opposed Jindal’s repeal of the state motorcycle helmet law.

Gone.

Jindal, through DHH Center for Health Care Innovation and Technology chief Carol Steckel, tried to fire the 69 IT employees last December in favor of handing off the contract for their work to UNO under the state’s Medicaid program.

The employees were called in for a teleconference at which time they were told they would be unemployed in January. Upon their return to their work stations, the employees found they were locked out of their computers.

But the State Civil Service Board vetoed Steckel’s proposal on Feb. 1. She first cited a savings of $2.1 million, then $7 million, prompting one member to say he had “zero confidence” in her numbers.

Steckel came to Louisiana from Alabama where she served as that state’s Medicaid Commissioner. In was in that capacity that she inferred that Alabama’s indigent amputees did not need artificial limbs. Her budget for 2008 cut programs that pay for prosthetics and orthotics (used to correct deformities) because, she said, the programs were optional, not mandatory.

The Civil Service Commission was scheduled to take the matter up again on Wednesday of this week but DHH withdrew from the agenda on Monday. One source said that UNO decided to opt out of the contract agreement. Another said that questions arose about the use of Medicaid funds for non-Medicaid costs in the contract, a practice that is strictly prohibited.

The fate of the IT employees, meanwhile, remains uncertain. “We have been misinformed on future employment by DHH executives on three occasions,” said one of the workers. “At each meeting we had, we felt as though we were being threatened with furlough without pay.”

If the administration felt it was punishing Manuel, however, it may have miscalculated. She had already retired once and when the directorship of the Office of Elderly Affairs opened a year ago, she applied and was appointed by Jindal. She now simply moves back into retirement, albeit involuntary.

She testified on Tuesday that senior citizens would be better served by leaving the Office of Elderly Affairs where it is.

Jindal’s executive budget calls for transferring the $45.3 million agency and its 51 positions to DHH where Manuel feels her agency will become lost in the DHH bureaucratic shuffle. “At no time was I asked for my input on this transfer,” she testified to the House Appropriations Committee.

Commissioner of Administration Paul Rainwater disagreed, saying that senior citizens would receive more, not fewer services. He said more federal funding can be generated through DHH’s guidance.

Manuel, contacted at home on Wednesday, said DHH plans to funnel Office of Elderly Affairs’ $45.3 million through nursing homes and hospitals in order to qualify DHH for additional federal funding.

“That almost sounds like money-laundering,” she said. “DHH calls this leveraging but there’s no guarantee that the dollars will keep coming back to the local councils on aging,” she said.

“They (the administration) said they have a vision, but when pressed by the committee, they admitted they had no real plan. Well, we (her former agency) have a vision and we have a five-year plan.”

She said she had her cell phone turned off during her testimony but when she turned it on after she spoke to the committee, “it was full of voice mails and each one was angrier than the last.” She said the messages were from Woods and her assistant.

“I took the rest of the afternoon off and they continued to barrage my office with calls, even though they were told I was not in. They apparently didn’t believe it, so they actually came to my office at 6 p.m. to check to see if I was in.”

Manuel said she called in sick the next day because she simply didn’t feel like facing all the hassle. “The general council (of the Office of Community Programs) called me at home today (Wednesday) and Tammy Woods was also on the line. She told me I was not in line with the governor’s thinking and she fired me over the phone.

“This (Woods) is a person who refuses to return telephone calls and who cancels meetings with no advance notice. She once had an appointment with people from New Orleans. They drove all the way into Baton Rouge only to be told the meeting was cancelled.”

Manuel said she has received flowers from several local councils on aging as a result of her dismissal. “I’m gratified at the response of the local councils but I have to say I’m very disappointed in our governor. I really believed there would be transparency in government.”

Jindal said simply that the administration had decided to “go in a different direction.”

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Much like Alice’s observation in Lewis Carroll’s Alice in Wonderland, details surfacing about the proposed sale of 600,000 acre-feet (196 billion gallons) of water from the Toledo Bend Reservoir just gets curiouser and curiouser.

In attempting to follow the time line leading up to the issuance of a request for proposals (RFP) by the Sabine River Authority (SRA) and the sudden shelving of the water sale plan to private investors, events appear to be grotesquely out of sequence.

Sufficient questions exist to raise concerns over whether the SRA, at best, may have gotten the proverbial cart ahead of the horse and, at worst, the possibility that backroom deals may have been cut in anticipation of a financial windfall for investors and the SRA alike.

Toledo Bend Partners (TBP) initially approached SRA more than a year ago about purchasing the water for resale to Texas municipalities and at the SRA’s Water Sales Committee meeting on Jan. 19, 2011, SRA Executive Director Jim Pratt informed the committee that he had received a proposal for “an out-of-state water sales agreement from the Toledo Bend Partners, LLC.”

Pratt told the committee that TBP was offering to pay $3 million up front to reserve the water rights using a graduated pay scale over four years until the project was on online to actually take water. He added that TBP’s proposal was seeking to reserve 600,000 acre-feet of water from the reservoir and that the partnership would pay a $50,000 non-refundable application fee to help defray SRA legal costs.

Pratt also informed the committee that he had already spoken with attorney Marjorie McKeithen of the New Orleans law firm of Jones Walker about representing SRA during the sale negotiations with TBP.

TBP is a Delaware-chartered entity comprised of trusts and entities owned by Billy Joe “Red” McCombs of San Antonio, Donald T. “Boysie” Bollinger of Lockport and Aubrey Temple of Coushatta and their respective families. The principals and their families and business interests have combined to contribute more than $75,000 to the political campaign of Gov. Bobby Jindal.

Jones Walker, a firm with hundreds of attorneys in at least 14 offices in eight states and Washington, D.C., is also a big supporter of Jindal. The firm itself had eight contributions totaling $22,000 and Paul Cabon of Washington, D.C., the firm’s Director of Government Relations, and wife Susan had 12 more contributions to the Jindal campaign that totaled $28,300. Various other law firm partners also contributed between $500 and $1,000 each.

The committee voted unanimously to accept the $50,000 from TBP and to enter into a professional services contract “not to exceed $50,000” with Jones Walker “for legal counsel for the out-of-state water sales project.

Eight days later, at the Jan. 27, 2011 meeting of the full SRA Board of Commissioners, the Water Sale Committee’s actions were ratified, again unanimously and without discussion.

The board on Feb. 24, 2011, unanimously approved paying out-of-town travel expenses for commission Chairman Robert Conyer and Water Sale Committee Chairman Larry Kelly to attend negotiations for the out-of-state water sale.

That was six months before a letter from Jindal Chief of Staff Stephen Waguespack informing SRA that the governor’s signature would be required for the sale of water “outside the boundaries of the state of Louisiana.” Waguespack added that any sale would not be considered “unless it is, at a minimum, the product of a competitive RFP.”

Waguespack’s letter was dated Aug. 25, the same date that the SRA board voted unanimously to approve the water sale contract with TBP and to forward the signed contract to Jindal for his signature.

Those two documents apparently crossed in the mail because a month later, on Sept. 22, the SRA board, in a sudden reversal, unanimously authorized Water Sale Committee Chairman Larry Kelly, Pratt and SRA staff to prepare and issue the RFP—a month after first agreeing to and signing a contract to sell the water to TBP.

Several individuals and firms expressed an interest in purchasing the water and each was provided a copy of the RFP by mail except for TBP which had a representative pick up a copy of the RFP at SRA offices.

Despite the expressed interest of other entities, TBP subsequently was the lone bidder on the purchase of the water at a price of 28 cents per thousand gallons or $91.24 per acre-foot. That price is substantially lower than other localities where water sale prices range from $5.20 per thousand gallons ($1,700 per acre-foot) to $8.88 per thousand gallons ($2,903 per acre-foot).

Such a spread in the purchase price by TBP and market prices elsewhere would seem to set TBP principals up for substantial profits as middlemen, leaving unanswered the question of why the SRA could not issue an RFP and negotiate directly with the end users in order to enhance its financial bottom line.

If all this is not confusing enough, there is the business of a $10 million bond issue approved by the SRA in which the time line also appears to be out of sync.

The SRA ran the requisite legal advertisement on its intent to issue $10 million in revenue bonds on Sept. 7, 2011 even though the State Bond Commission had already approved the measure at its June 16 meeting in Baton Rouge—nearly three months before.

The legal advertisement said that the $10 million in revenue bonds to finance the acquisition of “any property or facilities which the Authority is authorized to acquire,” would be secured by the sale of water to industrial customers by the Sabine River Diversion System. The Diversion System sales water to the petrochemical industry in Southwest Louisiana and those sales are separate from the proposed purchase by TBP, according to SRA management consultant Carl Chance.

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The patient was doing great at one time. His health, once robust, was now rapidly deteriorating, largely the result of his own excesses and self-indulgent behavior.

So it was that preeminent surgeon Dr. J (not a basketball player by any means) was brought in for consultation. Immediate surgery was ordered and Dr. J’s crack team was summoned for the operation.

The team, the best available anywhere on the planet, was not cheap. It consisted of Dr. Davis, emergency preparedness, $165,000; Dr. Taffaro, director of recovery, $150,000; insurance coordinator Ellington, $150,000; revenue and finance coordinator Smith, $107,500; alcohol and tobacco intake monitor Dr. Hebert, $107,000; tax analyst Katz, $56,000; mobility monitor and de facto management team director Dr. N. Gautreaux (fee unknown) and members Powell and Smiley heading up the pardon committee in the event of any procedural screw-ups, $36,000 each; head nurse Teepell, $167,000 and damage control expert Plotkin, $90,000.

Once the team was assembled, the patient was wheeled into OR and Dr. J’s work was begun.

Dr. J: Give me some light here. We need more transparency.

OR nurse: Here you go, Doctor.

Dr. J.: No! Don’t shine the light on me! Put it on the patient.

Nurse Teepell: Nurse, you’re on report for such a violation of protocol.

Dr. J: We have a real mess here. Look, his lungs have far more air than is necessary to perform their function. That’s wasteful inefficiency.

Nurse Teepell: Yes, I can see that, sir.

Dr. J: We should be able to cut back to a single lung. Same with the kidneys.

Nurse Teepell: I concur.

Dr. J: And just look at that liver. It’s practically hemorrhaging bile. What could be causing that?

Nurse Teepell: It must be a malcontent. Better get rid of it.

Dr. J: Great idea. Let’s contract out the liver function.

OR Nurse: Doctor, a patient can’t survive without a liver.

Dr. J: Who’s performing this surgery? Did you go to medical school?

OR Nurse: No, Doctor, and I’m not sure you did either.

Nurse Teepell: That’s ENOUGH, nurse! Dr. J knows what he’s doing.

Dr. J: And just look at this heart. Four chambers? Why can’t we eliminate three chambers and have the heart do more with less?

OR NURSE: Doctor, I don’t think….

Dr. Davis: SILENCE! This is emergency surgery and I say Dr. J’s strategy has merit.

Dr. J: I’ll just start cutting right here….Whoa! Look at all that blood. It’s going everywhere!

Dr. Taffaro: We have to do something quickly.

Dr. J: I know: berms. Build berms.

Smith: With all due respect, doctor, berms will cost upwards of a quarter-million dollars. A clamp is only $12.

Dr. J: But I thought of berms first, so it’s gotta be berms. I want my berms. Can we get insurance to pay for it, Mr. Ellington?

Ellington: Sure. No problem. That would be FEMA, the Federal Emergency Medical Administration.

OR NURSE: But Doctor, that’s not what FEMA stands for and besides that, the berms are washing away as fast as you build them.

Dr. Gautreaux: Nurse, if you continue to defy change, you will suffer the wrath of my management team.

Dr. J: This patient is in terrible condition but I think we can save him by privatizing all of his internal organs. We can get millions for them and use the money to pay our salaries.

Nurse Teepell: Doctor, you’re a genius.

Dr. J: I know.

Ms. Katz: There should be an advantageous tax loophole for this strategy.

Nurse Teepell: There’s a ready market for lungs, kidneys, livers and brains. The only problem is there’s no one we know who wants a heart.

Dr. J: That could be a problem. We may have to pay someone to take the heart. What should that cost us?

Dr. Hebert: At least $68 million, but it could a risky management decision. If need be, we could up the ante to $74.8 million as an incentive. And whoever takes it probably won’t keep it very long. But we can get Mr. Plotkin to say it’ll save $200 million in the long run.

OR Nurse: Doctor, I’m not getting a reading on the monitor. I think we’ve lost the patient.

The OR is eerily still for several seconds. Finally, voices interrupt the silence.

Powell: Uh-oh.

Smiley: Can’t you order him not to die?

Dr. J: Well, I suppose we could replace him with a consultant.

Nurse Teepell: Brilliant, sir!

Dr. J: I know.

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