A knotty legal question may have arisen from the actions by the LSU Health Sciences Foundation in Shreveport to hire a national consulting firm and law firm with expertise in arranging partnerships with private hospitals on behalf of three hospitals under the umbrella of the LSU Medical Center in Shreveport.
It also appears that the foundation’s involvement may have been a deliberate attempt to circumvent the state’s public records laws.
An in-house memorandum to medical center employees by Chancellor Dr. Robert Barish this week indicated that the non-profit foundation is working closely with the medical center to negotiate “partnerships” between LSU Medical Center in Shreveport, E.A. Conway Hospital in Monroe, and Huey P. Long Hospital in Alexandria and local hospitals in those cities.
At the same time, it was learned by LouisianaVoice that University Medical Center in Lafayette is currently in negotiations with Lafayette General Medical Center to lease the state hospital.
“We have asked the LSU Health Sciences Foundation in Shreveport to be our advocate and intermediary with interested hospitals and health systems,” Barish wrote in his memo. “The foundation has engaged a national consulting firm and law firm with expertise in arranging hospital partnerships to continue the process on our behalf. With the information they collect they will be better able to help us negotiate an arrangement that aligns with our mission, assuring financial stability, patient access and the continued strength of our education programs.”
Several weeks ago, the foundation began drafting a request for proposals (RFP) for partnership arrangements on behalf of LSU Health System but the RFP was abruptly abandoned in favor of the foundation’s participation in an apparent transparent effort to avoid transparency. Because the foundation, as a non-profit entity is exempt from public scrutiny, any negotiations conducted by the foundation would be shielded from disclosure.
“I can assure you that the process has just begun,” Barish wrote. “Our representatives will talk with local healthcare entities who are (sic) shown interest, as well as other potential partners. This approach will expedite the process and provide the necessary legal, financial and regulatory guidance. Rest assured that we will make use of all the resources necessary to ensure a strong future for our campus.”
Barish then invoked the necessity of secrecy that has become a trademark of the Jindal administration. “As I hope that you will understand, these types of arrangements cannot be effectively negotiated in the public eye. Therefore the foundation will not be releasing specific information at this time.”
By the same token, because it is a private 501(c)(3) nonprofit corporation, it would seem that the foundation would be prohibited from negotiating a lease of public property and equipment to a private hospital. There are established legal procedures that must be followed—by a public body, not a private foundation—before agreements may be negotiated on behalf of any public agency.
The foundation’s own web page stresses the fact that its revenues “are clearly separate from state funds. The foundation does not release your information to the state,” the web page continued in reiterating its autonomy to potential donors. “This means that the details of your personal finances will not become a matter of public record as they would if you gave directly to a state office like LSU Health Shreveport.”
The LSU Medical Center in Shreveport has 459 beds while E.A. Conway has 247 and Huey P. Long, 137 and the three hospitals combine to employ some 7200 doctors, nurses and support staff.
Additionally, there are another 800 employees at University Medical Center in Lafayette, meaning some 8000 employees will be impacted by the administration’s proposed privatization, or partnership proposals for all four hospitals. Many will lost their retirement and many more will even lose their jobs, along with their benefits.
Employees have expressed concerns about job security, benefits losses and pay cuts as a result of the proposed “partnerships.” Elected officials and members of the medical community are also concerned about the impact the move might have on accreditation, federal funding and physician training programs.
Gov. Piyush Jindal has been working to downsize government and the state workforce has been depleted, particularly in the areas of health care and corrections.
Accordingly, as an additional 8000 state employees are scheduled to be terminated as a result of the partnership move, additional runs on the bank can be expected by the Louisiana Employees Retirement System (LASERS), already seeing employee retirement money being pulled out in record amounts.
From July through October of this year, $16.39 million was withdrawn from LASERS by employees, many of whom have left state government with no plans to return. That amount for the same period in 2011 was $13.47 million, according to LASERS.
Louisiana Voice 
Wow. Just when I think we have seen the worst ….. Where is our Legislature? When are they going to stand up for the people of Louisiana?????? Tom, as always, you are the LONE VOICE of the people in this very darkest of hours.
Just in case anyone in our State Government is reading this…. the negotiations between Huey P. Long and private parties should be subject to public records requests, as Huey P. Long Hospital now falls in the Rapides Parish Hospital Service District created by R.S. 46:1081. That political subdivision of the State has a Bd. of 9 members who are appointed and serve at the pleasure of the Governor. Under the Statutes dealing with Hospital service Districts, the Board Members or Commissioners are empowered to engage with private providers and are in many cases exempt from Ethics conflicts. For example, a doctor who sits on the RPHSD Board may also hold a contract with the State wherein he personally provides (or he supplies) physician services, while simultaneously being employed full time as an unclassified state employee as the medical director for another State agency altogether. Hows that for transparency?
Okay Representative Katrina Jackson, time to once again come to the aid of your countrymen. Seems like you, Mrs. Jackson, are the only legislator with a spine. Please ask our Attorney General to rule on the legality of the use of the LSU Health Sciences Foundation to even entertain a proposal to privatize a state owned and operated facility. With as little as we hear from our turncoat Attorney General, you’d think he was flitting about the country with Judas Jindal on one never-ending vacation.
Do we have some losers running this state or what?!
You know, every conceivable criticism has been hurled at our do nothing legislators but nothing seems to rouse them. They seem content to stand by as the state is systematically dismantled. They act helpless instead of showing leadership when it matters most. They KNOW BJ’s agenda is to advance his political career, enrich his cronies, and NOT to improve Louisiana. They act cowardly because they are afraid of retaliation. Only a few have stepped up and displayed courage in the face of our malicious governor. I can only conclude that the losers who hang back and do nothing to stop this train wreck are not only minus a set, but also are just plain old dumb—as in stupid—to allow themselves to be manipulated by Piyush the Puppet Master. That, or they really like the feel of his hand…
The food services and housekeeping depts at LSU Health Shreveport have, in recent past, been privatized, with the current state employees at the time this occured, being grandfathered into their current state employee status. They are still paid by the State, and accrue retirement and benefits as before their depts were privatized. I know this for fact because i have personally questioned these employees. My question, does this set legal precedent for the other ( nurses, RT’s, xray techs, etc) current state employees to retain pay, benefits should a private partnership actually take place?. I feel it does. Also, since our benefits( retirement, etc) were deemed constitutionally protected during the state’s last legislative session, how does this legality play into this scenario? Tom, thoughts on these points?. Keep up the EXCELLENT work! I continue to be enlightened by your investigative jounalism!. Thanks!
We have word from impeccable sources that the entire Jindal education reform package will be dead before the year ends no matter what the courts decide. Now who would have suspected as much? Tom? Thanks!
Amen to Representative Katrina Jackson!
Again, forget it. Big money, ie, our tax money being “privatized”, done deal, Jindal gets around rape by partnerships, implying consent, so he becomes the smart grinning governor doing good guvmint, and then the rates go up after a couple of yrs and the non profits increase their wages and the stupid dumb downed state employees are working for the private guys at lower wages, assuming of course they have enough personal responsibility to get a lower paying job and quit taking those entitlements. and look at the numbers in La. that want to secede from the United States….I pray that JIndal gets slowed before he reaches the final solution.ron
Wait until they replace income tax with property and sales tax. Just a vague rumor now, but there’s a reason there has been a wholesale replacement of appointed officials over at Revenue.
My mother lives in rural Texas on 1 acre. Her per MONTH tax liability is $300 (though because she’s over 65, it’s waived). Considering her income is $900/month of social security, that’s a very heavy regressive tax for poor people who may have the misfortune of actually owning land.
Is there any legal way to stop what is going on in this state? Someone tell me why deals have to be made behind the backs of the taxpayers of this State. If what Jindal is doing is wrong—and I believe it is—why then can’t the powers that be stop him? Please.