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Archive for the ‘RFP, Request for Proposals’ Category

Notable Quotables (in their own words)

Posted in Boards, Ethics, Governor's Office, Higher Education, Jobs, Layoffs, LSU, Privatization, RFP, Request for Proposals, State Agencies, Transparency on September 9, 2012| Leave a Comment »

“Every hospital that is within the LSU System is now on the table for privatization.”

–Observer commenting on amendment to resolution passed by the Piyush Jindal-dominated LSU Board of Supervisors authorizing the issuance of a Request for Proposals (RFP) for public-private partnerships for the operation of LSU System hospital. (The amendment was worded to include “each of the hospitals in the Health Care Services Division.”)

“That’s a decision for the board and the LSU System president.”

–Piyush Jindal mouthpiece Kyle Plotkin, trying to convince someone (perhaps himself) that the firing of Fred Cerise as head of the 10-hospital LSU Health System was not orchestrated by Jindal.

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π-yush ‘slash and burn’ tactics reminiscent of first LSU Pres. Gen. Sherman’s March to the Sea–but without the charisma; 600 jobs, 50 beds to be cut at Interim LSU Hospital in N.O.

Posted in Boards, Budget, Governor's Office, Health Care, Higher Education, Jobs, Layoffs, Legislature, Legislators, LSU, Privatization, Public Records, RFP, Request for Proposals, State Agencies, Teague, Transparency on September 9, 2012| 4 Comments »

LouisianaVoice has learned that Gov. Piyush Jindal, through the LSU Board of Supervisors, is planning to lay off up to 600 people at the Interim LSU Public Hospital in New Orleans within the next few weeks in a move that will further reduce access to health care for Louisiana’s indigent population.

The action also would mean the loss of about 50 of the facility’s 201 beds.

The layoffs were mentioned by Dr. Frank Opelka, recently appointed to replace Dr. Fred Cerise as head of LSU’s health care system, during last week’s meeting of the Board of Supervisors. Though he said he would be accelerating the cuts that Dr. Cerise and Dr. Roxane Townsend had developed in an effort to mitigate negative impacts, Opelka never mentioned any numbers and apparently no one on the Jindal-dominated board, thought, or wanted to ask.

Nor did any board members inquire as to the impact the cutbacks would have on the ability to continue to provide health care to indigent residents and neither was the question raised as to how the action might affect some 300 residents who train at the facility.

The Interim LSU Public Hospital presently employs about 2100 persons, meaning that about 24 percent of the facility’s personnel and 25 percent of its beds will be lost.

Last Friday, Robert Barish, chancellor of LSU Health Shreveport, notified his faculty and staff that the LSU Board had approved a resolution authorizing the LSU Health Sciences Center in Shreveport and the Health Care Service Division to issue a request for proposals (RFP) “for the purpose of exploring public-private partnerships for the LSUGSC-S affiliated hospitals, namely the LSU Medical Center in Shreveport, the E.A. Conway Medical Center in Monroe and the Huey P. Long Medical Center in Pineville/Alexandria.”

Consideration of that resolution was not added to the board’s agenda until late Thursday and the board subsequently amended the wording to include “each of the hospitals in Health Care Services Division.”

That amendment to include “each of the hospitals in Health Care Services Division,” while largely ignored and not discussed at all, is key in that it means that “every hospital within the LSU System is now on the table for privatization,” as one observer put it.

“Shreveport is moving faster but they are just the first,” he said. “The dismantling of indigent care will now occur much more quickly and more broadly.”

The resolution says, “The President shall have the discretion to authorize the release of the Request for Proposal and to accept the proposal that he deems in the best interest of the university.”

It did not specify if that would be current Interim President William Jenkins or his successor, recently rumored to be Steve Moret, current Secretary of the Louisiana Department of Economic Development.

Administration officials and LSU Board members have denied that the fix is in for Moret to become the next president. Jenkins said it would be ridiculous to hire a consultant to conduct a national search if the decision had already been made.

The layoff plan is the latest example of the slash and burn tactics employed by Piyush in his zeal to cut health care services to the poor while at the same time dismantling the teaching hospitals that currently serve about 200 LSU and 100 Tulane University medical students.

Beginning with the firing of LSU President John Lombardi last April, Jindal, through his hand-picked Board of Supervisors, has fired or reassigned Drs. Cerise and Townsend and LSU System General Counsel Ray Lamonica.

At the same time, he has implemented severe cutbacks at Lallie Kemp Regional Medical Center in Tangipahoa Parish and at LSU Hospital in Bogalusa—cutbacks that have adversely affected the availability to provide care in the areas of oncology, gynecology, disease management and pediatrics and the loss of up to 150 jobs at Lallie Kemp. Jindal also announced the closure of Southeast Louisiana Hospital in Mandeville, beginning next month, a move that will leave the entire southeastern section of Louisiana without state mental health treatment centers.

The most incredulous statement to come out of all this is that of Jindal spokesman Kyle Plotkin who, when asked whether Piyush was involved in Cerise’s firing, said, “That’s a decision for the board and the LSU System president.”

But almost as puzzling is the deafening quiet from members of the legislature whose constituents—both health care providers and their patients—stand to be negatively impacted by the recent chain of events.

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Administration said in secret negotiations for Southeast Louisiana Hospital takeover by Magellan Health Services

Posted in Governor's Office, Health Care, Layoffs, Legislature, Legislators, OGB, Office of Group Benefits, Privatization, RFP, Request for Proposals, Transparency on July 25, 2012| 13 Comments »

LouisianaVoice has learned that the recent $651 million cut to the state’s healthcare system may have had nothing to do with the decision by Gov. Bobby Jindal to close down Southeast Louisiana Hospital in Mandeville and in fact the move may have been in the works for months.

In fact, secret negotiations have apparently been ongoing for some time between the state and Magellan Health Services of Avon, Connecticut, to take over the hospital after the hospital is closed and subsequently privatized.

Department of Health and Hospitals Secretary Bruce Greenstein announced late last Friday that the 348-bed hospital would be closed down beginning Oct. 1, putting about 300 employees out of work.

Southeast Louisiana Hospital is one of three state hospitals offering treatment for mental illness, including depression and attempted suicide. Early word is Southeast Louisiana Hospital’s patients will be transferred to the remaining two facilities—Central Louisiana State Hospital in Pineville and East Louisiana State Hospital in Jackson.

Only last month, the state sold 1,442 acres of hospital property to St. Tammany Parish for $6.45 million, far below the $14.7 million the property (including $200,000 in timber assessed valuation) was appraised for in February 2011.

The total 1,900-acre tract, including the remaining area of approximately 500 acres on which the hospital is situated and a park area leased to St. Tammany Parish, was appraised at $67.865 million only last week, according to the web page of the Office of State Lands.

LouisianaVoice has also learned from DHH sources that Greenstein is prepared to sign forms to officially declare the hospital as surplus property preparatory to its being put up for auction.

Early speculation had the hospital property being sold for the development of a high-end residential subdivision.

But LouisianaVoice learned that Greenstein had recently confided in Reps. Paul Hollis (R-Covington) and Tim Burns (R-Mandeville) that he had been in negotiations with Magellan about taking over the operation of the hospital once it is privatized.

Moreover, a New Orleans doctor reportedly was approached several weeks ago—before news of the loss of the $651 million in Medicaid funds by the state—about becoming the chief of staff of the Mandeville facility.

The unidentified doctor initially thought he was being recruited for an existing private hospital or for a private hospital’s expansion into the Northshore area because nothing had been said at that point about Southeast Louisiana’s closure. “It all makes sense now,” he told a colleague after learning of the impending closure of East Louisiana Hospital.

Once the hospital is declared surplus property and the facility closed, a request for proposals would have to be issued by DHH and private companies would be required to bid on contracting for either purchasing the hospital or running it as a contractor.

Magellan already has a connection with the state and Jindal, including three lucrative contracts.

The company, in addition to contributing $5,000 to Jindal’s campaign in 2008 and another $5,000 to the Louisiana Republican Party last September, currently has separate multi-million dollar contracts with three separate state agencies totaling more than $392 million. All three contracts run for two years, from March 1, 2012 through Feb. 28, 2014, records show.

The first contract, for $357.6 million, is with DHH through the Office of Behavioral Health. That contract calls for the firm to run a statewide management organization for a prepaid inpatient health plan for behavioral health services.

A $22.4 million contract with the Department of children and Family Services calls for Magellan to provide an array of coordinated community based services and support for children and youth with behavioral health disorders.

The third contract, for $12 million, is with the Department of Public Safety and Corrections and calls for Magellan to provide coordinated community-based services and supports for incarcerated youths with serious behavioral health disorders.

The larger, $357.6 million contract was approved in January but the two smaller ones were each approved in April, retroactive to March 1.

The recent appearance at the Capitol of former DHH Secretary Alan Levine only serves to fuel speculation swirling around the Mandeville hospital.

Levine, who came to DHH from Florida in January 2008, resigned in August 2010 to return to Florida where he currently serves as the Division 3 President of Health Management Associates where he is responsible for the administration of for-profit hospitals in Florida, Georgia, Oklahoma, Kentucky and West Virginia.

Greenstein to a legislative committee last week that Levine was in town to discuss Florida’s setup. He said Florida is one of several models for ways in which to increase revenues for state hospitals.

All the latest developments—Greenstein’s meeting with the legislators, the informal recruitment of the New Orleans doctor, last month’s sale of 1900 acres of adjoining hospital property and the impending declaration of the remainder of the property, including the hospital itself, as surplus, and the administrations reported secret negotiations with Magellan—all point to a covert plan by Jindal and Greenstein to close the hospital that dates back well beyond the news of the loss of the Medicaid funds.

All of which leaves unanswered the question of how indigent patients needing mental health treatment will be able to afford that treatment when the state hospital in Mandeville becomes a private, for-profit facility.

Besides the question of continued treatment for patients, employees of the hospital, like the 177 employees of the Office of Group Benefits, will lose retirement and medical benefits when the hospital makes the transition from public to private provider.

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Appropriations Chairman Jim Fannin deflects administration effort to cut 149 OGB positions

Posted in Governor's Office, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, Privatization, Public Records, RFP, Request for Proposals, Transparency on May 23, 2011| 4 Comments »

The Jindal administration suffered a legislative setback in its efforts to privatize the Office of Group Benefits (OGB) Monday when the House Appropriations Committee voted unanimously to reinstate 149 positions the administration had cut from the OGB budget.

The move came as an amendment to HB 32 by bill author and Appropriations Committee Chairman Rep. Jim Fannin (D-Jonesboro).

At the same time the committee further amended the bill by deleting five lines that would have directed the state treasurer to transfer a portion of the OGB $500 million surplus into the general fund, thus guaranteeing that the administration may not use part of the surplus to help plug the $1.6 hole in the state budget.

In asking the committee to amend the bill to restore the jobs and to protect the agency surplus, Fannin said, “I have had no communication (from the administration) about any savings to be realized by eliminating these positions.”

Communication has become something of a problem lately as administration officials have refused to attend meetings of the Senate Retirement Committee. Retirement Committee Chairman Sen. Butch Gautreaux (D-Houma) has made no secret of his opposition to efforts to privatize OGB.

Gov. Bobby Jindal has run into considerable opposition to his efforts to privatize OGB although the administration has issued a request for proposals (RFP) for a financial adviser to evaluate the agency and to seek a third party administrator (TPA).

It is the second RFP issued by the administration after Wall Street banking firm Goldman Sachs was the lone bidder on the first and then only after taking part in drafting that RFP.

DOA representatives say that the current RFP was drafted completely in-house.

Former OGB CEO Tommy Teague, who was fired on April 15 after leading OGB from a $60 million deficit when he took over five years ago to its current $500 million surplus, testified before the Senate Retirement Committee that he could not understand the need for a financial adviser if the intent of the administration was only to obtain a TPA.

“It’s not necessary to know the financial situation of the agency just for a TPA,” he said. “The only rationale for a financial assessment would be that the administration plans to sell OGB.”

The original RFP did indeed make repeated references to the sale of the agency and Commissioner of Administration Paul Rainwater has consistently given conflicting testimony about whether the administration’s intent was to sell the agency or obtain a TPA for OGB’s Preferred Provider Organization (PPO).

Approval of Fannin’s amendment does not necessarily mean that Jindal has failed in his efforts toward privatization of the agency. It does mean, however, that he would have to come back before the legislature to obtain approval for cutting the positions, a move Rainwater claims would save the state $10 million a year.

Even that claim, however, is somewhat vague since the $10 million does not come from the state’s general fund. OGB is completely self-funded, deriving its revenue from premiums charged state employees for health care coverage.

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First, help us with the RFP, then you can bid on the project

Posted in Governor's Office, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, Privatization, RFP, Request for Proposals on March 17, 2011| 3 Comments »

A major global investment banking firm that spent several weeks with state officials assisting in the writing of a request for proposals (RFP) from “qualified financial advisors” to assess the market value of the Office of Group Benefits (OGB) preparatory to privatizing the agency turned out to be the only one to submit a proposal, according to sources within the Louisiana Division of Administration (DOA).

Goldman Sachs, which helped write the specifications of the RFP, submitted the lone proposal that calls for the Wall Street firm to assess the market value of all tangible and intangible assets of OGB and to seek a buyer for the agency that oversees benefits for 78,000 people, including state employees and their dependants.

Under terms of its proposal, presented on Monday, Goldman Sachs would receive $6 million for its services whether or not it is successful in securing a buyer for the agency, one source said. “Even if they are unable to find a buyer, they still get the $6 million,” he said.

In another development that could raise eyebrows among members of the Joint Legislative Committee on the Budget, the Division of Administration, realizing it was short of time, retained the services of a New Orleans firm to work up an evaluation in time for Gov. Bobby Jindal to submit his proposed budget last Friday.

The firm, Chaffe and Associates of New Orleans, was awarded a contract for $49,999–one dollar less than the $50,000 amount that would have required the approval of the Office of Contractual Review. Moreover, when the contract was initially drafted, it was for $44,000 but was quickly amended to $49,999.

It is considered unusual, if not illegal, for a firm to assist in drawing up specifications for a bid proposal and subsequently bidding on—and winning—the contract for the work.

Gov. Jindal has indicated he feels he can use $150 million to $200 million of OGB’s current surplus of more than $500 million to help plug the state’s looming $1.6 billion budget deficit.

The way it would work, said the DOA source who asked not to be identified, the purchaser would discount OGB’s assets, giving the state $150 million to $200 million with the remaining $300 million to $350 million being passed on to the purchaser.

Jindal, in his budget proposal last week, called for the elimination of 149 positions at OGB, saying the layoffs would save the state $10.3 million, a figure disputed by Capitol News Service’s DOA source.

“The privatization of Group Benefits, if it goes through, will destroy health benefits for state employees,” he said.

Those sentiments have been echoed by State Sen. Butch Gautreaux of Morgan City.

“I am very concerned about the governor’s efforts to sell off OGB,” said Gautreaux, a member of the OGB board, in a recent email. “I sit on the board and attend the meetings. We’ve developed a reserve of over $500 million and again, the governor is looking at raiding those funds for short term and recurring expenses.”

He said OGB, with administrative costs of only 4 percent, is financially stable. Privatization, he said, “will be a catastrophic move.”

“The governor is getting some very bad advice,” said the DOA source. “He’s listening to people who have no insurance background whatsoever.”

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