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.


