Gov. Bobby Jindal had another roadblock thrown in his path to privatization of four LSU hospitals on Wednesday when the State Civil Service Commission, by a 4-3 vote, rejected the state’s contracts with private hospitals to take over state-run facilities in New Orleans, Lafayette, Houma and Lake Charles.
The matter has already been scheduled for a re-hearing on Monday at 8 a.m. in the Louisiana Purchase Room on the first floor of the Claiborne Building at 1201 North Third Street in Baton Rouge.
In taking the action, commission members complained that the information provided by LSU was insufficient.
Really? A contract with 50 blank pages was not enough? The commission perhaps needed some specifics—like an offer and an acceptance and a termination clause?
It should be noted that the commission did not vote to reject the administration’s layoff plans relative to the privatization of the Interim Hospital in New Orleans, University Medical Center in Lafayette, Leonard Chabert Medical Center in Houma and W.O. Moss Medical Center in Lake Charles.
Civil Service Director Shannon Templet must make a decision on the layoff plan by next Tuesday in order for the layoffs to become effective on June 24.
But if the privatization plan is not approved, the hospitals would necessarily have to keep nearly 3,000 classified employees on the job in order to keep the hospitals open.
Dr. Fred Cerise, the former head of the LSU Health System who was fired by Jindal (through the Board of Stuporvisors, of course), said on Wednesday that the Centers for Medicare & Medicaid Services (CMS) still has not given the go-ahead for the hospital privatization plan and without that approval, everything else is moot.
Cerise said the state plans to use the $110 million that Children’s Hospital in New Orleans is paying to take over the Interim Hospital (formerly Big Charity before that facility was abandoned after Hurricane Katrina and a new structure built) will be used by the state to leverage greater matching funds from Medicaid.
“But if CMS does not approve the plan, the state will have to repay Medicaid for any excess money it received on the basis of that $110 million,” he said, adding, “I don’t think there’s any way CMS is going to give its stamp of approval to this plan.”
Dr. Michael Kaiser, Chief Executive Officer of the LSU Health Care Services Division, said he would ask the commission to reconsider its decision. He said the commission would be provided with the agreements between LSU and the private companies.
“I’m not sure what they intend to show the commission on Monday,” Cerise said, “but there’s no way they can show a savings when contracts for privatizing two of the hospitals (Chabert and Moss) don’t even contain any financial details.”
That, of course, raises the question of just why was the commission not provided copies of the agreements in the first place. Did Kaiser expect the commission to simply rubber stamp the privatization plan as it has in the past and as the LSU Board of Stuporvisers does on a regular basis with anything Jindal sends over?
In the past the Board of Stuporvisers has done Jindal’s bidding without question—from the firing of LSU President John Lombardi, LSU System General Counsel Raymond Lamonica, and Drs. Roxanne Townsend and Cerise, to operating in complete secrecy to hire a new LSU president who possesses credentials that are questionable at best, to approving essentially blank contracts for the takeover of LSU hospitals in Shreveport, Monroe, Houma and Lake Charles. The contracts consisted of about 50 blank pages and contained no mention of financial terms, specific offers, acceptances or termination clauses.
And for the privilege of doing Jindal’s bidding, members of the Board of Stuporvisers get to metaphorically lick the master’s hand with campaign contributions totaling about a quarter-million dollars between them.
All of which raises another question that no one has asked to this point but one for which there is a desperate need for an answer:
• When was the last time the LSU Board of Stuporvisors took any action during this governor’s administration that supported academics and was not done to achieve a political agenda—Jindal’s political agenda, to be specific?
Anyone? Bueller? Bueller? Anyone?
Kaiser, in the wake of the unexpected rejection of the administration’s plan by the commission, only now bemoans the fact that in anticipation of approval of the privatization, the public hospitals have no money in the state budget for the new fiscal year that begins on July 1.
That would be because Jindal did not include funding in his budget back in January because he was certain his privatization plan would be approved.
Somewhere out there, the ghost of Jim Nabors as Gomer Pyle is flashing a big, innocent grin and saying to Bobby Jindal, aka Barney Fife, “Sur-PRISE, Sur-PRISE, Sur-PRISE!” (Our apologies to Barney Fife.)
Kaiser said the administration would have to try and determine what other action could be taken if the privatization is not approved.
More than 3,500 employees work at the four hospitals. Of that number, 2,953 are classified, or Civil Service rank-and-file employees. The remainder are unclassified and do not enjoy Civil Service protection. Their layoffs do not have to be approved by the commission.
More than half of the classified employees (1,690) are employed at the Interim Hospital in New Orleans. The remainder are at University Medical Center in Lafayette (487), Leonard Chabert Medical Center in Houma (556) and W.O. Moss Medical Center in Lake Charles (220).
It will be interesting to see if any legislators from the affected areas show up for Monday’s Civil Service Commission re-hearing. Republican House Speaker Chuck Kleckley is from Lake Charles.
Other Calcasieu Parish House members include Democrats Michael Danahay, A.B. Franklin, and Dorothy Sue Hill and Republicans Brett Geymann, John Guinn and Ben Hensgens.
Calcasieu senators include Republicans John Smith, Ronnie Johns and Dan “Blade” Morrish.
House members from Lafayette Parish include Democrats Terry Landry, Jack Montoucet, Stephen Orgego and Vincent Pierre and Republicans Taylor Barras, Stuart Bishop, Nancy Landry, and Joel Robideaux.
Senators who represent Lafayette Parish are Republicans Elbert Guillory, Johathan Perry, Page Cortez and Fred Mills.
Terrebonne/Lafourche parish House members include Republicans Gordon Dove, Sr., Joe Harrison and Lenar Whitney of Terrebonne and Democrat Jerry Gisclair and Independent Jerome “Dee” Richard, both of Lafourche. Richard, by the way, was present at Wednesday’s commission hearing.
Representing Lafourche and Terrebonne parishes in the Senate are Democrats Troy Brown and Gary Smith and Republicans Norbert Chabert and Bret Allain.
Orleans Parish House members include Democrats Neil Abramson, Jeffery Arnold, Austin Badon, Wesley Bishop, Jared Brossett, Walt Leger and Helena Moreno. Orleans Republicans include Raymond Garofalo, Christopher Leopold and Nick Lorusso.
Senators who represent Orleans include Republicans A.G. Crowe and Conrad Appel and Democrats Karen Carter Peterson, Jean-Paul Morrell, David Heitmeier and Edwin Murray.
Louisiana Voice 
Thank you, Tom! If not for you, we would be in total darkness!!
WO Moss operated on a 34 million dollar budget this fiscal year. I can’t prove this but word is LCMH is being offered 51 million to partake in this public/private agreement. And supposively, 90% of the allocated funds for the public/private partnerships have already been allocated even before calculating in the LCMH amount!
Excellent column!!!!! Thank you for this vital information!
Did I understand this? 4 members of this commission actually agreed to this plan without having received – much less read – the specifics of these proposals???
No, three members agreed. Four voted against the proposal, thereby rejecting the plan—for now. A re-hearing is set for Monday at 8 a.m.
muffed this with a typo. just unbelievable that anyone with a sense of responsibility could agree to something sight unseen.
Wonder if a blank check was sent to those 3 members if they would just sign it and return it back to the people. If they are really that stupid, how do they get up in the morning, much less be on a board that’s supposed to help people in need? Sad way to live a life.
CS stopped helping employees a long time ago.
These Jindalites may not BE criminal, but they certainly seem to WANT to be.
Hate to throw out a random question like this, but, someone please set me straight on something. Wasn’t Jindal the head of the Department of Health and Hospitals when Charity was shifted from being run by the state to LSU? And now he wants to shift control of the new LSU Medical Center to a for profit instead of LSU? I’m not sure I can see the logic in this. What in the world is he after? And fifty blank pages in a contract? In my work I have to worry about the color of the ink in the pen I use.
Jindal was DHH head during the time when Louisiana over billed Medicare by billions, which we had to pay back. Luckily, to my knowledge after Katrina the feds forgave much of it. But yeah, Jindal was the head guy when that big pile of stuff happened.
Thanks for your answer. Oh what a day…….
The room was packed! Special thanks to all the speakers that showed up to speak for workers who did not speak for fear of reprisal. Super special thanks to Brad Ott for his comprehensive research into the minutia that matters SO much and for you Tom for your fabulous reports! Hope to see folks turn out on Monday to let the Governor and LSU know that we – along with the civil service commission are watching these scams. Let’s turn this **** around!!!
Dana, hope it’s standing room only on Monday!
Tom: I happened to be at the meeting yesterday, thank you very much
Thanks Tom for being our ears and keeping us in the loop. I can’t wait to see what happens Monday.
A Big DITTO.
Ditto Stephen’s ditto.
Dear Civil Service Commission:
I am the daughter of the former Rev./Chaplain Preston B. Mixon, Head Chaplain of Charity Hospital of New Orleans. Chaplain Mixon loved his relationship to both employees and patients. Many times he went out of his way,
to help and assist people, for over seventeen (17) years, while under the direction of Dr. Charles Mary, Administrator.
I strongly suggest that each and every one of you, try to bring back ALL of the LSU Hospital employees.
1) Residents of Louisiana need their jobs to provide for their families.
2) People from all over the world brought their love ones to Charity for their medical needs and concerns.
3) When people visited the City of New Orleans for medical care, their love ones stayed in Hotels, ate at famous Restaurants and actually made the City of New Orleans money.
Do you all realize, that Charity Hospital of New Orleans was the 2nd to LARGEST Hospital in the World.
Please lets reopen Charity Hospital of New Orleans, as well as, all other LSU Hospitals, and lets keep them all open for the poor people of Louisiana.
Thank you for making “LOUISIANA” a better place live and survive.
Rita Mixon McDonald
rmmcdonald@charter.net
Its a pity that we elect these people like Bobby Jindal and he and Republican elected officials suddenly gave themselves the authority to sell out the state public assets. We, the citizens of Louisiana, should challenge this action. Citizens must be the ones to make this decision by voting . These elected officials are doing their very best to privatize government. We must not allow that.
Yes, we all should speak to the Louisiana State Legislators about what can be done to bring back the LSU Healthcare (Charity) System here in the State of Louisiana.
Hi, Tom, Thank you for yet another great and informative column.
On the budget – with the teachers getting the small raise, does this mean that White’s salary will be raised? Didn’t he promisse that he wouldn’t accept a raise until teachers received one?
By the way, did you ever hear from Vitter about the questions he constructed for the nominee in Washington?
Thank you, Dawn Pinkston
Dear Rita,
I appreciate your concerns about the Louisiana Charity hospitals and I hear your plea for Louisiana legislators to stop the dismanteling of a health care system which has successfully cared for the indigent and prisoners for many years. You need to know the dismanteling has been done. This happened last year and LSU system helped to privatize Greenstein/Jindal plan in what was probably an attempt to keep a couple of the charity hospitals open. Despite the blank pages of the contract it has happened. I noticed it took about 6 months after last year’s session before the media was talking about it. KPLC aired a segment with State Senator Johns stating Moss Regional will remain open. House Speaker Kleckley was commenting on the need for a new health care system because Charity Hospital was antiquated. No one was protecting the Charity Hospital system but trying hard to play the closings down so people wouldn’t panic. What do you do when it’s already been done. I know what our Governor might say,”Out of chaos comes change.” He got the chaos part right and we shall soon see it.
Oh how right you are. The chaos has all ready started. It will be very interesting to watch how Jindal reacts when what he has done blows up in his face before he leaves this State.
We the people of this State will pay for his bone headed missteps for years and years to come !!!
Sad but true.
Not real impressed with privatization of the mental health facilities. Yeah, the stage saves money by NOT providing aprropriate services. Thanks for the information. Don’t know whether to be mad or depressed.
Tom
Tom what would you say the odds are that the Civil service commission will vote against the lay offs come Monday?
I think that if enough LSU employees/patients contact the Civil Service Commission, that they might give more thought about it, as well as, be more concerned for employees, who need jobs to provide for their families, and possibly have more concern and understanding for the poor residence of Louisiana who have no health insurance, and certainly cannot afford it.
Civil Service won’t help anyone unless they are in the party of cliques! I promise you that! Jindal has total control over Civil Service! When his two lap dogs, John Schroeder and Mert Smiley went to Civil Service on Bobby’s behalf, they all did the dance, and changed civil service rules! Trust me, Civil Service could care less about state employees! Jindal controls them. If you think they are going to compromise their jobs to buck Jindal, think again. Can anyone besides me see that they are separating the haves from the have nots? And they are doing it in the name of honesty, integrity, and moral obligation. For you see, they are the creators of the universe, and be damned the have-nots. Once all the haves are lined up like little ducks in a row, there won’t be any need for those bloodsucking, government whore mongering, have nots. They are salivating and waiting for the day their corporate welfare checks can go up, hence leaving the poor dead, and the middle class in the poorhouse!!!
I’m going to approach this a little more cautiously because Jindal does not have complete control over the Civil Service Commission as he does the LSU Board of Stuporvisors and the Department of Education. That’s because while he does appoint commission members, he has little to say about who he appoints because the members are nominated by the presidents of the state’s private colleges and universities and he is forced to choose from those nominees.
The flip side of the coin is that the commission has far too often simply rubber-stamped the governor’s wishes as with the Office of Group Benefits. The action last week to reject the hospital contracts is an encouraging step and now we can only wait to see what Monday brings.
I’d like to believe otherwise, but I can’t help but believe the vote last week was posturing for the public’s and the state employees’ benefit to give a commission that seems to have largely gone to sleep some credibility. I hope I am proved wrong tomorrow.
“So shall we see said the blind man!”
The vote will likely change once LSU reaches the “standard”. Like it or not the standard is not the employees, it is the economy and efficiency rule they constantly reference per the Sumpreme Court ruling. Even Mr Ott referenced that in the last meeting. What the commission has done is say LSU failed to provide enough information to meet that standard. I think the above posters are correct in that they will now share the data they should have shared in the first place and will likely meet that standard under the rules and get the vote. That’s is wha happened in both the DHH IT outsourcing and the OGB outsourcing. They were both originally rejected when the number did not add up and were later approved when the numbers did. LSU will likely come clean with the numbers on Monday, or some that look clean, and get the votes they need. But I agree with Tom I do not think Jindal has complete control of the commission. Sadly he does have complete control LSU and DHH so they can produce anything or any numbers they want.
I have lived in this State my intire life. All 58 years and I truly can not remember a Governor imposing his or her will upon the people if this State.
I truly wish some one would explain how one man can remove the right to vote on some very important issues the way Jindal and this adminerstration has.
I ask the experts are we any better off as a State with the moves Jindal has made in his 5+ years in charge. If we are please explain it to me and the other people of this State.
I have lived in this state for 59 years! Anyway you slice the political pie, the money changers will buy whatever is needed to serve their own interests. I could see Jindal coming all the way from India with his Rhodes Scholar degree! I just have to wonder how many Louisianians bought into his second term thinking he was going to show us how to walk on water! My grade is 100%, because I never bought into the first term. As we slowly but surely watch him sell Louisiana down the Mississippi River, we can only pray there will be a life jacket big enough to hold onto until his second term is over!
Thank you Tom for your fast response and continually thorough and thoughful analysis of this State Civil Service Commission (SCSC) vote as well as Governor Jindal’s pruient quest to privatize every facet of Louisiana public social welfare provision ever created. Though Monday morning at 8am will seem to some like a special concesssion to the LSU re-presenters, calling for the vote so quickly on the heels of the previous itself brings special challenges to LSU to actually be ready to present the information necessary for the SCSC to uphold recently enacted rules that put the Commission in accord with Civil Service of the City of New Orleans v. The City of New Orleans 854 So.2d 322 (2003).
The 2003 Louisiana Supreme Court decision ruled unconstitutional Civil Service Commission authorities’ automatic exercise against privatization contracts that would involuntarily displace classified state employees, but afforded State and New Orleans Civil Service Commission provision for review and approval of such “contracts for personal and professional services were constitutional, subject to limitations.”
In response to a distinct ratcheting upward Louisiana state healthcare privatizations in 2012 (and especially the 100+ Southeast Louisiana Hospital worker appeals challenging their layoff), SCSC approved new rules at its May 2013 that clearly link “economy and efficiency” tests with consideration of layoffs of classified employees:
Chapter Two Changes
2.9 The Commission is empowered:
***
(h) To review and approve or disapprove proposed state contracts for personal services, prior to
their effective date, between the State and any instrumentality thereof, or between the state and
any person or entity in order to determine whether such contracts will result in the involuntary
displacement of classified employees, and if so, to ensure that the appointing authority has
demonstrated that such contract is being let for reasons of efficiency and economy and not as a
pretext for the discriminatory dismissal of classified employees.
Chapter Three Changes
3.1 It shall be the duty of the Director of Personnel:
(o) To review and approve or disapprove proposed state contracts for personal services, prior to
their effective date, between the State and any instrumentality thereof, or between the state and
any person in order to insure such contract is being let for reasons of efficiency and economy and
not as a pretext for discriminatory practices against classified employees.
Central to the 4-3 SCSC vote was LSU’s near-total lack of disclosure of the proper documents to certify consideration of the “economy and efficiency” motion. Three Commissioners nevertheless proclaimed the lack of “political discrimination” in LSU seeking classified worker layoffs, while attempting to diminish the equal consideration that “for reasons of economy and efficency” …
The SCSC re-consideration hearring re-presents Wednesday June 5th’s agenda:
1) Request of the LSU Health Care Services Division (HCSD), to appear before the Commission to discuss the outsourcing of the services of the University Medical Center (UMC) in Lafayette, the Interim Louisiana Hospital (ILH) in New Orleans and the WO Moss in Lake Charles, and the LJ Chabert Hospital in Houma and to seek the approval of the respective contracts. Commission Action Required. (Dr. Michael Kaiser, HCSD Interim CEO to sign in at door upon arrival to answer any questions of the Commission.)
The SCSC Special Meeting is Monday June 10th at 8:00am (Louisiana Purchase Room, Claiborne Bldg, 1201 N. 3rd, Baton Rouge — just across Capitol Lake toward the casino.) It will likely be challenging to sustain another 4-3 vote against outsourcing and mass layoff of dedicated State Civil servants (hence why other voices will need to be present to certify just how UNeconomical and INefficent these privatization schemes of Governor Jindal truly are).
K. Brad Ott — Advocates for Louisiana Public Healthcare
[…] Tom Aswell, Louisiana Voice […]
Sad sad day for Louisiana.
What was the outcome of the Louisiana Civil Service Commission today on Monday, June 10, 2013?
BATON ROUGE, La. (AP) – The Civil Service Commission has reversed course and has agreed to privatization plans for four LSU hospitals, with nearly 4,000 layoffs set to take effect June 23.
The commission’s 3-2 vote Monday was the final step needed for Gov. Bobby Jindal to turn over management of university-run hospitals in New Orleans, Lafayette, Houma and Lake Charles to private hospital operators in the local communities.
The decision changed course from less than a week earlier, when the commission stalled the plans.
Members said they needed more details about financing arrangements to determine if the state would save money and gain efficiencies from the deals.
After the rejection, the Jindal administration and LSU provided additional paperwork to the panel outlining financing plans. Jindal is seeking to privatize nine of the 10 LSU hospitals.
It seems strange that todays vote was 3-2 and Fridays was 4-3. What happened to the two members that did not vote. Where they the ones that voted against it Friday and now did not vote so that they would not have to go on record.
I emailed Misty and actually spoke to her today after the vote was in, and learned that there were only five (5) members present today. I still do not know why the vote was 3-2, when 5 members attended the meeting this morning at 8:00 AM. Perhaps, they need to be pressured in holding another meeting with all SEVEN (7) MEMBERS present.
Louisiana Politics at its best!
I agree that all 7 members should of voted a second time and not just 5!
YES, we all surely do. We should push this issue.
How can 2 members of this committie not attend a meeting of such importance?
This has the same rotten smell every thing has forced upon us.
This is a sad day ! I see no reason for a civil service commission any longer.
Wait until Jindal gets rid of Civil Services, everyone will cheer. CS is giving Jindal everything he wants, so he might as well take CS, too.
Isn’t this whole thing so very surprising? Answer: No.
You were right, Stephen! Cowardly, disgusting maneuvering, by way of absenteeism, which played out exactly as they planned. As usual, our expectations are way too high…
And here’s a slightly more detailed article about this from the Greater Baton Rouge Business Report [reprinted from the Shreveport Times. Hopefully, somebody will report exactly who on the commission voted each time and which way:
http://www.shreveporttimes.com/viewart/20130610/NEWS01/130610014/Civil-service-panel-agrees-LSU-hospital-deals-
From the State Civil Service Commission website: in the first vote, Kenneth Polite, D. Scott Hughes, C. Pete Fremin and Sidney Tobias opposed, and Chairman David Duplantier, Vice-Chairman John Mclure and G. Lee Griffin approved. The agenda from today lists that the request would be voted on again today but does not give any more details than that.
I do not know why the civil service commission even bothered meeting on Monday to vote. It is clear as day that Jindal knew he would get his vote.
Unless the post office has become faster then lighting , please explain to me how a vote can be TACKEN on Monday morning on there approval of the DHH layoffs and then the DHH puts 4000 lay off notices in the mail on Monday evening and there in the mail boxes of the DHH employees that will be laid off on TH 24Th of June?
There is no way in hell that they can type sine , address 4000 notices put them in the mail before the postal workers stop work for the day and have the notices in the mail boxes of the laid off workers the very next day!!!
That first vote was for nothing but a show Bobby Jindal and this whole bunch of thieves can go to you know where! !!!!!
This stinks to the high heavens and if the Feds don’t catch a good whiff of it some thing is wrong with more then there noses!!!!
What a sad day for Louisiana……..
Do we know who voted the first time and who voted and didn’t vote the second time? Do we know how each commissioner voted? Why don’t we ever know anything? Is Scott Hughes saying that the lawmakers who finally passed a state budget forced them to vote they way they did?