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Archive for the ‘Privatization’ Category

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.

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It might be understandable if critics of Piyush Jindal were somewhat smug after revelations that he lobbied—practically begged—to be chosen for vice president or at least be awarded a cabinet position in the Mitt Romney administration during the Republican nominee’s unsuccessful campaign for president.

Piyush, after all, kept feeding us that asinine line that he had the job he wanted and that he wasn’t interested in higher office. He even went so far as to say he would not accept a cabinet position which seemed odd, given that he had not been offered one.

The Daily Mail, a British publication which somehow seems to provide better coverage of Washington than our own media, has a story that quotes a Romney insider as saying Romney’s biggest post-election critic, one Piyush Jindal, “wanted very, very much to be Vice President.”

Of course, we in Louisiana who know him best knew that all along; he couldn’t wait to take the first flight out of Baton Rouge headed for the Beltway. We knew it, he knew it, the media knew it but still he tried to play coy with us, a tactic he is not very good at—in fact, is downright clumsy. Diplomacy is not his forte; never has been, never will be.

What he is good at, however, is taking Louisiana citizens—those who twice entrusted the state’s highest office to him—for idiots who were too stupid to see through that façade of sincerity, that veneer of humility, that false mask of concern for the people of this state.

None of it is—or ever was—real. We’ve been beating that drum for more than two years now and the message finally seems to be getting through. This guy is not to be trusted—not with our lives, our health care, our education (public and higher), our prisons, our taxes, our economy, and certainly not with all those political appointments to his campaign contributors.

• We sat idly by as he systematically undermined the state’s infrastructure by giving away billions of dollars in tax breaks, incentives, and credits to corporate entities.

• We have watched him rape public education in the name of reform, all the while, bringing in unqualified administrators at six-figure salaries, some of whom are allowed to work from their homes in other states.

• We have seen him abandon higher education to survive by its own devices (read: tuition increases which hurt those least able to absorb the financial pain).

• We have witnessed him as he turned his back on hundreds of thousands of Louisiana citizens in need of health care by implementing ruthless budget cuts to and in some cases, closing state hospitals and clinics.

• We have stood on the sidelines as he closed prisons after being thwarted in attempts to privatize those facilities.

• We have watched as he privatized state agencies, one of which amassed a $500 million fund balance while efficiently managing state employee health insurance claims.

• We have observed over and over how he has shamelessly courted the national media while ignoring requests from Louisiana media for interviews and comments.

All these actions (he refers to them as “reforms” when he appears on those frequent network news interviews) have cost thousands of Louisiana citizens jobs which in turn have cost them their benefits. He even boasts on those interviews of the jobs he has eliminated, failing to mention the has-been legislators he has appointed to six-figure state administrative jobs—jobs for which they are completely unqualified in every respect.

And, of course, when anyone disagrees with him, be it a state employee, an administrative official, a college president, an attorney, a doctor or even a legislator, he or she is immediately fired or demoted, a practice that has come to be known in Louisiana as teagued.

He has run up more than $100,000 in costs for state police security alone while flitting from state to state, from network news show to network news show, raising campaign money, promoting his book on leadership (what irony!), campaigning for other Republicans, and more recently, lecturing the national Republican Party on becoming more lovable, more touchy-feely.

But sometimes when one bites the hand that feeds him, it can bite back.

Former Romney aides have outed those “craven hypocrites” whom they say only days before the Nov. 6 election were in a virtual feeding frenzy over desired cabinet positions in the Romney administration that, it turned out, was never to be.

“I’m sure Gov. Romney is finding out now who his real friends are,” one aide was quoted as saying. “There were one or two well-known figures who were late committing to support him, who were the most eager to curry favor when it looked like we would win and who are now out there trashing the governor,” the aide added.

That would be our boy Piyush and Newt Gingrich.

Gingrich was late in joining the party because he was seeking the nomination in his own right. Piyush, you may recall, was lightning quick with his endorsement of Texas Gov. Rick Perry before that ill-fated campaign cratered.

When the train wrecks formerly known as the Gingrich and Perry campaigns tanked, Gingrich and Piyush saw the Romney parade headed down the street and jumped in front, yelling, “Follow me!”

Romney former foreign policy adviser Dan Senor told MSNBC, “In politics, when you win, you are a genius and when you lose everyone calls you an idiot. But to see the way certain craven hypocrites are acting right now really sticks in the craw.”

Senor, by the way, is the son-in-law of former Louisiana Secretary of State and Insurance Commissioner Jim Brown.

Senor said “leading figures” were cozying up to Romney in Ohio days before the election, trying to land cabinet positions.

Piyush made national headlines with his criticism of the Romney campaign within days of his loss to President Obama. He turned on Romney like a junkyard dog would attack an unsuspecting intruder.

And that may be more than an analogy; Piyush, the incoming head of the Republican Governors’ Association, obviously now considers himself as the titular head of the party and the one anointed as its official spokesman.

Who better, after all, to criticize than a sitting governor who won 67 percent of 20 percent of the vote in last year’s gubernatorial election? That’s right, the darling of the Republican Party could coax only 20 percent of the electorate to the polls as 80 percent of the state’s voters yawned themselves into a state of catatonic indifference. Of course, his $9 million in campaign funds bowled over an unknown school teacher from north Louisiana who had only about $25,000. What would one expect?

Still, she got 17 percent of that 20 percent turnout. He called it a mandate. We call it swatting a gnat with a meat cleaver.

So now, he lectures Republicans on how not to write off 47 percent of the voters but to strive to attract “one hundred percent of the votes.”

Does anyone else see the irony here?

But oddly, it’s not smugness we feel as we watch this little drama being played out in the national, indeed international, media.

Instead, it’s a continued sense of sadness and embarrassment for the state and its people.

We deserve better than petty, petulant Piyush.

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This may come under the heading of beating a dead horse, but if Piyush Jindal, henceforth known as the Brahman Brutus of the Republican Party, truly has the job he wants as he has repeated ad nauseum, then why the hell doesn’t he stay in Baton Rouge and do the job he was twice elected to do?

If Piyush will satisfactorily address this one question, then we promise to leave him alone.

Lest anyone think we’re sticking our neck out by offering to lay off this pathetic excuse for a governor, fear not: there’s no way on earth he can reconcile his job to his constantly trotting off in every direction on the compass to address national issues and the problems of the Republican Party.

There’s just no way he can square up the two diametrically opposed activities.

To the remaining Piyush loyalists (and the numbers, believe it or not, are shrinking, Jeff Sadow notwithstanding), ask yourselves one question;

If Piyush truly has his sights set on being governor of Louisiana for the next three-plus years, why do you think he ignores state media and only gives interviews to national media like Fox News, the New York Times, Washington Post, CNN, Politico and The Huffington Post?

Again, why does he refuse all state media requests for interviews?

• Do you really think the New York Times gives a flying fig about Louisiana’s projected $1 billion budgetary shortfall projected for next fiscal year?

• Do you cling to the faintest notion that CNN worries about the fate of Louisiana’s poor who are facing the loss of medical care because of the closure of state hospitals?

• Do you entertain any shred of belief that the Washington Post is even remotely concerned about that expanding sinkhole in Assumption Parish that swallows up more land each day while threatening the area with potentially explosive gases?

• Do you feel that Politico even knows about the incredibly senseless loss of about $5 billion a year in state revenues because of ill-advised tax breaks, exemptions and credits given to corporations who provide pitifully few jobs to Louisiana residents?

• And why do you think The Huffington Post should be concerned about 1,000 state employees who have been kicked to the curb by this administration (with still more to follow with the completed privatization of the Office of Group Benefits, the anticipated attempt again to sell or, in the alternative, close state prisons?

• Do you actually expect Fox News to investigate the appointment of former legislators to six-figure state jobs to beef up their retirement—jobs for which they are plainly unqualified or to ask probing questions about the awarding of the glut of six-figure salaried jobs in the Department of Education (DOE) to people who are allowed to work part time and to work from their homes in such places as Los Angeles and Tallahassee, Florida? Or to inquire into the hiring by DOE of a former Kansas City school official who left that system under a cloud after the awarding of a $37 million contract to an insider who had worked as a consultant on the project?

In the most recent spate of interviews, Piyush the Pontificator has been quite generous in his criticism of the Republican Party in general and Mitt Romney in particular after having campaigned for Romney with all due enthusiasm during the recent presidential campaign.

So, just where was he with all his sage wisdom during the campaign itself?

You see, you Piyush proponents, he was, as he has consistently been with most issues he has confronted, blindly naïve in foresight an 20/20 vision in hindsight. But he recovers so nicely that he thinks he never leaves a trace of his rumbling, bumbling, stumbling agenda.

Perhaps Bob Mann said it best in his recent post on his web blog Something Like the Truth http://bobmannblog.com/ when he compared Jindal to a passenger on the Titanic who, seeing the iceberg, conveniently ignored the danger but later was critical of the ship’s captain for his performance at the helm.

But let’s examine the record.

The only part of Piyush’s sweeping state employee retirement program reform package that passed during this year’s legislative session was the so-called “cash balance” plan where by new hires would come in after July 1, 2013 under a 401 (k)-type pension program.

Unclear—because the Piyush administration, in its headlong rush to reform, neglected to obtain a ruling on the IRS and Social Security status of the cash balance plan.

An adverse decision could force state employees—and the state—to contribute to both Social Security and Medicare, which would add to state employee and state costs.

The Louisiana State Employees Retirement System (LASERS) board voted last week to ask the legislature to delay the July 1 start of the new program because the administration has yet to request a clarification of the IRS and Social Security status.

State employees do not pay into Social Security and thus, unless they have sufficient quarters in the private sector, do not currently qualify for Social Security benefits or Medicare.

The IRS determination period does not begin until February, according to Maris LeBlanc, deputy director of LASERS. It is not clear how long it will take to obtain a determination and LeBlanc said to her knowledge, the Social Security equivalency letter, which is required from the administration, has not been submitted.

Division of Administration (DOA) spokesman Michael DiResto said DOA would submit the letter regarding that status to federal officials this week.

The Louisiana Retired State Employees Association (LRSEA) has filed a lawsuit challenging the legislation was approved without the legally-required two-thirds vote because there was a cost involved in implementing the new program.

House Speaker Chuck “the Genuflecting Gelding” Kleckley (R-Lake Charles), predictably parroting the Piyush position, maintains there was no extra cost in the implementation and that a simple majority vote was sufficient.

The legislature’s own actuary, however, differs with Kleckley and Piyush, making the determination that there was a cost.

So, who do you believe: the one who is paid to evaluate the cost of legislation or the one who desperately wants to cling to his political appointment as House Speaker?

Meanwhile, you can look for Piyush on any major network news program—because he has the job he loves.

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“This is what happens when Gov. Jindal removes members from the committee.”

—Rep. Katrina Jackson (D-Monroe), on Friday’s House Appropriations Committee approval of the $1.1 billion contract with Blue Cross/Blue Shield to serve a third party administrator (TPA) for the Office of Group Benefits.

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The deuces were wild in Friday’s vote by the House Appropriations Committee to approve the $1.1 billion contract between the state and Blue Cross/Blue Shield (BCBS) which calls for BCBS to take over the Office of Group Benefits (OGB) Preferred Provider Organization (PPO), which provides health care coverage for about 62,000 state employees, retirees and their dependents.

The Senate Finance Committee, meeting jointly with the Appropriations Committee, was a foregone conclusion insofar as the Piyush Jindal administration is concerned; Senate Finance was overwhelming in favor of knuckling under to Piyush all along. It was the Appropriations Committee that displayed a streak of independence last week when it voted 16-9 in favor of an immediate vote on the contract.

That motion, by Rep. Katrina Jackson (D-Monroe) prompted Commissioner of Administration Kristy Nichols to pull the proposal until this week.

Within hours of that vote, two members of the Appropriations Committee, Vice Chairman Cameron Henry (R-Metairie) and Joe Harrison (R-Gray) were removed by House Speaker Chuck Kleckley (R-Lake Charles) as indisputable proof that he is Piyush pliant.

Henry and Harrison were replaced by Reps. Bryan Adams (R-Gretna) and Alan Seabaugh (R-Shreveport).

This time, the vote was 15-9 in favor of the contract with Adams and Seabaugh voting in favor.

Also voting in favor were two members who were absent from last week’s meeting—Reps. Patrick Connick (R-Marrero) and Jack Montoucet (D-Crowley), and two members who got the message after the demotion of Harrison and Henry and flipped last week’s “no” votes to emphatic “yes” votes this week: Reps. Henry Burns (R-Haughton) and John Schroder (R-Covington).

Two other members who voted with Jackson last week were absent Friday: Reps. Brett Geymann (R-Lake Charles) and James Morris (R-Oil City).

Now that the contract has gained the legally required approval of the two legislative committees, the next likely phase will be the courts if unsuccessful bidder United Healthcare files suit against the state as expected.

Litigation could ensue because of the selection process for the contract, which is not to exceed $1.1 billion. The BCBS bid is said to have been as much as $15 million more than that of United Healthcare.

Jackson, who had sought—and received—an attorney general’s opinion that the contract required legislative approval, said Friday’s action came despite testimony Friday that the contract, besides resulting in 111 OGB employees losing their jobs, would cost the state “millions in additional dollars.”

She said new budgetary request shows a “significant increase” in what the state will spend on claims.

Testimony from the Legislative Fiscal Office and an OGB CEO Charles Calvi did little to shed any light on questions raised by committee members but it was all but obvious from the outset how the vote would come down.

While the Appropriations Committee vote was virtually a 180 reversal of last week’s vote (16-10 in favor Friday as opposed to 16-9 opposed last week), the Senate Finance Committee’s vote was 10-3 in favor Friday compared to last week’s 11-3 vote to defer action until this week. Voting against both deferral last week and the contract this week were Sens. Sherri Smith Buffington (R-Keithville) and Ed Murray (D-New Orleans). Sen. Dan Claitor (R-Baton Rouge) voted against deferral last week but in favor of the contract this week. Sen. Fred Mills (R-New Iberia), who voted in favor of deferral last week, voted against the contract.

“This is what happens when Gov. Jindal removes members from the committee,” Jackson said of Friday’s vote.

“The vote last week was a vote based on the will of the legislature. The vote this week I a vote based on Jindal violating the separation of powers clause and removing members from the committee based on their vote(s).

“Testimony showed that this move would not result in state savings yet (and) because of Jindal’s overlapping interference in the legislative process, some members were backed into voting for it.”

Sen. Gerald Long (R-Natchitoches) told LouisianaVoice after the meeting that he voted in favor of the contract “because BCBS is already administering 75 percent of OGB’s claims and is doing a good job.”

He did not address the question of why he voted to put 111 OGB employees out of work who were doing an equally good job administering the remaining 25 percent of OGB claims.

One of the phrases most repeated by witnesses who spoke out against the contract as committee members talked among themselves, texted and walked around the room was “why fix something that is not broken?”

That question is yet to be addressed by anyone on either committee or from DOA.

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