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More on Kristy’s new job: it appears Ochsner received $31 million to take over Leonard J. Chabert Hospital in Houma

September 17, 2015 by tomaswell

ETHICS DILEMMA

(CLICK ON IMAGE TO ENLARGE)

“No former elected official, including a legislator, no former member of a board or commission, nor agency head for two years shall assist another person for compensation in connection with a transaction, or render service on a contractual basis for or be employed/ appointed to any position involving the agency by which he or she was formerly employed or in which he/she formerly held office.” (LA Rev Stat § 42:1121)

“…Kristy Nichols is leaving the public sector to become Ochsner Health System’s vice president of government and corporate affairs, the Jindal administration announced today.” (Baton Rouge Business Report, Sept. 15, 2015)

So Nichols will be going to work for Ochsner as a lobbyist. And while state law precludes her lobbying the legislative or executive branches for two years, there appears to be no prohibition to her lobbying local governments (parishes and municipalities) on the part of Ochsner.

Kristy, anticipating the end of her boss’s rocky tenure in January, found her own golden parachute at Ochsner. We don’t know her salary at Ochsner, but we’re guessing it’ll be six figures. Taken at face value, that would normally be the end of the story.

But with this gang, there’s always more than meets the eye. And thanks to our friend C.B. Forgotston who helped us connect the dots, we’re able to shed a little more light into how she parlayed three years of repeated budget crises into such a high-profile private sector job.

Remember the great state hospital privatization fiasco and the contract with 50 blank pages? http://www.modernhealthcare.com/article/20130602/INFO/306029998

The contract obligated the state to long-term spending obligations that will extend decades beyond the Jindal years. Let’s ignore for the moment the fact that the Center for Medicare and Medicaid Services has yet to approve the deal. Instead, let’s explore the Nichols-Ochsner connection.

It was two years ago that the LSU Board of Supervisors signed off on that contract to hand over operation of state-owned hospitals in Lake Charles, Houma, Shreveport and Monroe. The blank pages were supposed to have contained lease terms. Instead, the LSU board left those minor details to the Jindal administration (read: Commissioner of Administration Kristy Nichols).

Eventually details about the contracts emerged, including that of the Leonard J. Chabert Medical Center in Houma. And, thanks to the Louisiana Public Affairs Research Council, that is where we’re able to bring the picture into focus.

Leonard Chabert Medical Center was opened in 1978 as a 96-bed facility with 802 employees but by the time it was privatized, it was down to 63 beds.

In 2008, a hospital-based accredited Internal Medicine residency program was begun. In 2011, the hospital’s revenue was 47 percent uncompensated care for the uninsured, 29.5 percent Medicaid, 13 percent Medicare, 5.5 percent state general fund and 6 percent interagency transfer from other departments with only 1 percent being self-generated.

When the Jindal administration moved to unload state hospitals, Chabert was partnered with Southern Regional Medical Corp., a nonprofit entity whose only member is Terrebonne General Medical Center (TGMC).

TGMC was slated to manage Chabert with assistance with a company affiliated with (drum roll)…..Ochsner Health System, Louisiana’s largest private not-for-profit health system with eight hospitals and 40 health centers statewide.

So what were the terms of the agreement? Five years with an automatic renewal after the first year in one-year increments to create a rolling five-year term.

Though Southern Regional is not required to pay rent under terms of the agreement, the Terrebonne Parish Hospital Service District No. 1 is required to make annual intergovernmental transfers of $17.6 million to the Medicaid program for Southern Regional and its affiliates. Here are the TERMS OF THE OCHSNER DEAL AT LEONARD CHABERT MEDICAL CENTER

Here’s the kicker: the cooperative endeavor agreement (CEA) calls for supplemental payments of $31 million to Ochsner. It’s no wonder the Houma Daily Courier described the deal as “a valuable asset to Ochsner’s network of hospitals” and that the deal “expands Ochsner’s business profile.”

Between 2009 and 2013, Ochsner’s revenue doubled from $900 million to $1.8 billion and the deal only means more revenue for Ochsner, the Daily Courier said. http://www.houmatoday.com/article/20140325/articles/140329692?p=3&tc=pg

We’re certain it’s just coincidence that the LSU Board signed off on a blank contract that the Jindal administration would fill in after the fact.

And it’s just by chance that Kristy Nichols, as Commissioner of Administration, was responsible for that task.

And of course it was just happenstance that Ochsner received that $31 million payment and a mere two years later, just as her reign at DOA was ending, saw the need to bring Kristy aboard as vice president of government and corporate affairs.

So there you have it. All you have to do is follow the money.

Posted in Contract, Contracts, DOA, Governor's Office, Health Care, Lobbyist, LSU, Privatization, Public Records | 15 Comments »

Notable Quotables (in their own words)

September 17, 2015 by tomaswell

“If we learned anything from the previous debate, it’s that these events reshuffle the deck. The deck has been reshuffled. And we’re fighting our way up.”

—Bobby Jindal, in assessing his performance at the kiddie table debate on Wednesday, Sept. 16 by email, as he strives to sit at the grown-up table.

“In tonight’s debate Governor Jindal neutered the Republican establishment in D.C. The Republican establishment in D.C. is the surrender caucus.”

—Jindal campaign manager Timmy Teepell, trying to earn his expensive fees from the Jindal campaign, also by email.

“He’s right—the deck has been reshuffled again. We’re on our way up. Don’t you want to be a part of it?”

—Supriya Jindal, echoing her husband’s less than convincing refrain. Ditto on the email.

“To follow through with their ‘card deck’ analogy: Yes, the debate did reshuffle the deck. Unfortunately for BJ, a joker is a joker no matter how many times the deck is reshuffled.”

—A reader who must by necessity remain anonymous. (and no, its not Earthmother, nor are we quoting ourselves.)

Posted in Politics | 1 Comment »

Don’t tell Bobby but we’re in his email address book and we get daily updates on how he ‘neutered’ GOP establishment

September 17, 2015 by tomaswell

Many of our stories come to us by way of tips from readers. Sometimes they identify themselves but most of the time they’re anonymous because our sources often are state employees and they don’t want to be teagued.

Occasionally, the readers even provide us with copies of public records. If not, we make requests of the appropriate agencies for documents that will verify the story. The Division of Administration more often than not either ignores our requests or drags out compliance with the public records laws for weeks or even months.

Lately, the Louisiana Department of Public Safety has found a way to deny us access to records by claiming ongoing investigations and thus, justifying not releasing documents. But in most of those cases, we already have the records from our anonymous sources who pulled the records prior to their becoming part of an “ongoing investigation.” One vocal critic, writing under a fake name (we know who he is) even claimed we were breaking the law by having those records in our possession. Not so.

More recently, we have been the beneficiary of another source for a rather pathetic, but nevertheless amusing running story—Bobby Jindal’s desperate quest for the Republican presidential nomination.

The source is none other than Jindal himself.

Sometimes it’s by sheer luck that we stumble into some of our stories. We’re certain that Jindal and/or his people never intended that we be included in his email updates but somehow we got on his mail list and we get updates on his campaign every day. Sometimes we get two or three such updates in a single day.

Last night, following the debates (the kiddie table and the grown-up debates, though at times it was difficult to tell which was which), we received not one, not two, but three updates, each one proclaiming Jindal (kiddie table) all but nominated, elected and inaugurated.

In two of those, the first from Jindal and the second from wife Supriya, the message was the same: “The deck has been reshuffled.”

That prompted an observation from a friend who said, “Yes, this debate did reshuffle the deck. Unfortunately for Jindal, a joker is a joker no matter how many times the deck is reshuffled.”

Having said that, we now would like to show you some of the recent emails from Jindal camp members, including campaign manager Timmy Teepell, communications director Kyle Plotkin (You have to love his references to Jindal as “the Gov”), deputy campaign manager Tim Saler, Bobby and Supriya Jindal. This list is not all-inclusive because it would be too long but it is indicative of the delusions of mediocracy that seem to permeate Team Jindal. We pick up the dialogue on Aug. 21 and carry it through Thursday morning(Sept. 17). Of course, like any good televangelist, there is the perpetual request for money at the end. Here we go:
From: Kyle, BobbyJindal.com [mailto:info@bobbyjindalhq.com]

Sent: Friday, August 21, 2015 5:26 PM

To: Tom Aswell

Subject: Fired Up

Governor Jindal just got off the stage at AFP’s Defending the American Dream Summit, and wow, the Gov (sic) crushed it. Check out this video I filmed a couple minutes after he finished speaking: People were so inspired by his message, they kept running up to the stage to try to shake the Gov’s hand. We are in the car headed to catch a flight to Iowa. Can you chip in $50 right now so we can capitalize on this momentum? It would be awesome to turn my phone on when we land in Iowa and be able to tell the Gov we just raised a lot of money. Thanks, Kyle Plotkin Communications Director, Jindal for President
(VIDEO WOULD NOT LOAD) 

 

From: Bobby Jindal – iPad [mailto:info@bobbyjindalhq.com]

Sent: Tuesday, August 25, 2015 3:38 PM

To: Tom Aswell

Subject: Our first ad

We just released a new ad in Iowa that shows footage of my exchange with pro-amnesty protesters who tried to silence my speech at the Iowa State Fair with shouts of “citizenship now.” I confronted the protesters with hard truths: “If you want freedom, if you love America — follow the law, learn English, adopt our values and get to work!” You can watch the new ad here: https://www.bobbyjindal.com/new-jindal-ad-follow-the-law/ The ad will be targeted online to voters across Iowa for the next week. Can you chip in $25 right now so we can keep it running and make sure more people see it? Thanks, Bobby
  

From: Bobby Jindal – iPad [mailto:info@bobbyjindalhq.com]

Sent: Sunday, August 30, 2015 4:40 PM

To: Tom Aswell

Subject: Thank you

I am in the car headed to the airport to fly back to Iowa. I wanted to say thank you. The last few months campaigning have been inspiring. I wish we could bottle up the energy and passion we see everyday at events so you could experience it for yourself. I’m very grateful for the support you have given me so far. But campaigning for President is expensive, so I’m asking you to double down and make a donation as we approach our end of month fundraising deadline. Thank you, Bobby

 

From: Tim Saler – BobbyJindal.com [mailto:info@bobbyjindalhq.com]

Sent: Tuesday, September 08, 2015 1:02 PM

To: Tom Aswell

Subject: We all knew

Winning the Iowa Caucus has never been about money, looks, or media attention. The Iowa Caucus is all about grassroots campaigning. That is why we always knew that Gov. Jindal would do well there. He loves talking with voters one on one. Thanks to the support of people like you, we are seeing this come to fruition in the polls. The latest NBC Marist Poll has Gov. Jindal rising in the polls in Iowa again – currently tied with Ted Cruz and Marco Rubio. This is great news for the campaign, but we still have a long way to go. Will you help us continue this momentum with a donation? Gov. Jindal has been adamant about using your donations for actual campaign activities – no meals out with campaign staff. Your donation will go directly into the field, and directly towards winning Iowa. Please make your contribution today. Thank you. Tim Saler Deputy Campaign Manager, Jindal for President
From: Bobby Jindal [mailto:info@bobbyjindalhq.com]

Sent: Saturday, September 12, 2015 10:01 AM

To: Tom Aswell

Subject: Weekend reading

Everyday (sic) on the campaign trail, I get great questions from voters — one I get a lot is what I’d do if I were elected President. That’s an easy question because while other candidates spent the last few years looking at polling and hiring consultants, I spent my time thinking about what the next President needs to do to get our country back on track and developed detailed policy plans built on conservative principles. So far, I released my plans on repealing Obamacare, fixing our broken education system, harnessing American energy, and rebuilding our national defense. All the plans are available on my website for you to read. When you are running for elected office, it’s easy to say you are for something. Every Republican running says they are for smaller government. But of all the candidates running, I am the only one that has actually cut government spending. It drives the big-government crowd in Louisiana crazy, but I have governed and kept my conservative principles intact. I’m proud of that. I hope you have a great weekend. Bobby
  

From: Bobby Jindal [mailto:info@bobbyjindalhq.com]

Sent: Tuesday, September 15, 2015 6:30 PM

To: Tom Aswell

Subject: Tomorrow night

I just landed in California for tomorrow night’s Republican Presidential debate. I’m fired up. I hope you will tune in to CNN at 6 p.m. eastern to watch. If you are excited for tomorrow night too, chip in $20.16 right now to let me know. Bobby
  

From: Bobby Jindal – iPad [mailto:info@bobbyjindalhq.com]

Sent: Wednesday, September 16, 2015 7:03 PM

To: Tom Aswell

Subject: Just got off stage at debate

I just left the stage at the Reagan Foundation for today’s debate. If we learned anything from the previous debate, it’s that these events reshuffle the deck. Tonight’s debate was no exception. Sure, I talked about policy and substance. I talked about my record as the only Governor running for President who has actually cut spending. If you think that’s the kind of leadership we need from our next President, then make a special contribution of $20.16 now. But I also talked about how important this election is for our future. This may be our last chance to save the American Dream, and we can’t afford to turn our hopes over to Hillary Clinton or Bernie Sanders. That’s why I need your help to make sure I am on the main debate stage at next month’s debate. The pundits and analysts have declared I won tonight, and it is critical we keep the momentum going. Stand with me and make a contribution of $15, $10, or even $5 right now so our campaign has the resources we need to make sure I am in the next primetime debate. The campaign continues. The deck has been reshuffled. And we’re fighting our way up. Join us today. Bobby

 

 

From: Timmy, BobbyJindal.com [mailto:info@bobbyjindalhq.com]

Sent: Wednesday, September 16, 2015 8:23 PM

To: Tom Aswell

Subject: Jindal wins debate, neutered Republican establishment

In tonight’s debate, Governor Jindal neutered the Republican establishment in D.C. The Republican establishment in D.C. is the surrender caucus. They backed down on repealing Obamacare, stopping a dangerous Iran deal, and defunding Planned Parenthood. Republican voters are angry at Republicans in D.C. and they should be. It’s time for us to fight for what we believe in. Donate $20.16 right now to stand with Governor Jindal. Thank you, Timmy Teepell Campaign Manager, Jindal for President

 

 

From: Supriya Jindal [mailto:info@bobbyjindalhq.com]

Sent: Thursday, September 17, 2015 7:24 AM

To: Tom Aswell

Subject: Bobby did great!! FW: Just got off stage at debate

 

This is Supriya. Did you watch last night’s debate? Bobby did great! He’s right – the deck has been reshuffled again. We’re on our way up. Don’t you want to be a part of it? Make an instant donation right now to join our cause >>> $20.16 This is such an exciting time in the campaign. Bobby is off to Iowa later this week, and I’m looking forward to joining him again on the trail soon. I know we can count on you! -Supriya

Posted in Campaign Contributions, Elections, Governor's Office | 8 Comments »

Notable Quotables (in their own words)

September 16, 2015 by tomaswell

“I am proud of the work that we have accomplished in making Louisiana a better place to live and raise a family…”

“I believe that our accomplishments will provide lasting benefits for generations to come.”

“…I have accepted a position with Ochsner. I’ll be helping them to strategically manage their growth as a healthcare provider. I’ve always been passionate about healthcare and wellness…”

—Commissioner of Administration Kristy Nichols in email messages sent to Division of Administration employees in which she announced she will resign, effective Oct. 14, to work as a lobbyist for Ochsner Health Systems.

“Kristy has been a key team player who has fully dedicated herself to bettering the state of Louisiana.”

“Together, we’ve been able to reduce the size of government, improve health care across the state, and create a better, stronger Louisiana.”

—Bobby Jindal, in announcing Kristy’s departure after three years as Commissioner of Administration.

Posted in Politics | 9 Comments »

Kristy Nichols won’t be joining Jindal in White House; she bails for Ochsner lobbying job in wake of latest fiscal crisis

September 16, 2015 by tomaswell

“Danger, Will Robinson!”

Okay, for those of you not old enough to remember the ‘60s, that’s the catchphrase from the old CBS series Lost in Space.

But the warning might just as well be applicable for patients of Ochsner Health System come Oct. 15.

That’s the date Kristy Nichols will be leaving as Bobby Jindal’s Commissioner of Administration to become Ochsner’s Vice President of Government and Corporate Affairs (read lobbyist). That was something of a surprise in that the smart money had her going to Blue Cross/Blue Shield of Louisiana.

Even as Jindal was sending out an email blast informing all three of his Louisiana supporters that he had just landed in California for the Republican debate and that he was “fired up” (yes, he actually said that; we’re so lucky to be on his email list), Nichols was announcing her resignation.

In her own email sent to all Division of Administration (DOA) employees on Tuesday, Nichols said she will be helping Ochsner “to strategically manage their growth as a healthcare provider.”

In other words (well, not in other words; as Oscar Madison said to Felix Unger in The Odd Couple: “Those are the words”), she will be doing for Ochsner what she and her boss did for the state during her three-year reign.

There were some other classic quotes contained in Kristy’s email as well as the official announcement from Jindal’s office. “I believe that our accomplishments will provide lasting benefits for generations to come,” she said.

Well, the effects of her tenure will be felt for generations to come but to shoehorn the word “benefits” into that statement must’ve taken a bit of imagination on someone’s part.

“I am proud of the work that we have accomplished in making Louisiana a better place to live and raise a family, and I am confident that we will continue down this path going forward,” she added.

The amazing thing is she apparently said that with a straight face. In our upcoming book about Jindal, an entire chapter is devoted to why Louisiana is not a better place to live and raise a family. (A hint: there are nearly three dozen categories in which Louisiana ranks as the worst or near the worst in the nation—hardly a ringing endorsement of the claim of “a better place to live.”)

But for sheer brass cajones, the trophy has to go to Jindal who, in heaping praise on Nichols, said she has “fully dedicated herself to bettering the state of Louisiana,” and “Together, we’ve been able to reduce the size of government, improve health care across the state, and create a better, stronger Louisiana.”

No wonder the boy continues to languish at less than 1 percent in the Republican sweepstakes. Bobby, you may want to check out the 9th Commandment. That improved health care claim is a damned lie. There’s no other way to say it than to say our “Christian” governor is a damned liar. He knows it and we know it.

And as the state, barely two months into the current fiscal year, is already cutting $4.6 million in spending ($3.8 million of which fell on higher education), instead of sticking around to try to solve the mess, she bails. (But then again, we’ve had three years of her problem-solving and we know what that accomplished.)

Just as we learn that the TOPS free college tuition program will fall $19 million short, she lights a shuck.

Even as the projected budgetary shortfall for next year is already more than $700 million, she cuts and runs.

Most important, considering where she’s headed, the Legislative Fiscal Office informs us that Kristy’s office failed to account for $335 million in increased spending anticipated by the Department of Health and Hospitals. So, naturally, she’s going to work for Ochsner to (and we can’t repeat this often enough) do for them what she’s done for the state.

God help us but most of all, God help Ochsner, heretofore a premier provider of health care for residents of South Louisiana.

This is the individual who once said her job was to make Bobby Jindal look good. Well, we all know how that turned out.

She is the same one who commissioned an employee satisfaction/efficiency study only to find the results so devastating that she tried to keep them from becoming public. (Sorry to rain on your parade, Kristy, but it was leaked to LouisianaVoice which posted the results last October and which showed severe morale problems within DOA) https://louisianavoice.com/2014/10/02/employee-survey-of-doa-employees-reveals-simmering-morale-problem-no-one-more-popular-than-jindal-in-poll/

Then, after we ran the story, she set out on a crusade to find the leak and ended up punishing the wrong employees in the wrong agency. (How’s that for being proactive in addressing the problem of poor morale?)

She’s the same person who hired Alvarez & Marsal at $5 million and then promptly amended the contract (illegally) to $7.5 million for the company to find ways for the state to save $500 million. The 50 percent amendment was in violation of provisions that allow only a 10 percent maximum increase in contract amounts without legislative concurrence.

She’s the same one who orchestrated the Office of Group benefits debacle which raised premiums and lowered benefits for state employees, retirees, and dependents last year. That was after the state lowered premiums as a furtive means of lessening the state’s contribution obligations so that she and Jindal could use the extra money to patch over gaping budget holes—a tactic that depleted OGB’s reserve fund from $500 million to virtually nothing.

Kristy is the same one who has presided over budget disaster after budget disaster her entire tenure with this year’s patchwork effort barely lasting until legislators hit the door of the State Capitol to head back to their districts. Now, as higher education is facing even more budget cuts after the problem was supposed fixed, she smugly expressed confidence that the funds would be restored “if income forecasts improve.” She said she was “hopeful” about that possibility. http://neworleanscitybusiness.com/blog/2015/08/28/analysis-holes-and-worries-emerge-in-louisianas-budget/

And of course, we are all hopeful that we have the winning Power Ball ticket which would improve our own income forecasts.

And just last Friday (Sept. 11) a glowing press release was issued by DOA lauding the $75 million savings in the first year of the Office of Technology Services consolidation. http://www.doa.la.gov/comm/PressReleases/Consolidated%20Office%20of%20Technology%20Services%20Saves%20$75%20Million%20in%20First%20Year,%2009-10-15.pdf.

The only problem: the release was just one more in a long line of blatant lies designed to make the administration look good. And to be completely candid, it takes some real whoppers to do that.

Senate Bill 481 by State Sen. Jack Donahue (R-Mandeville) created the Office of Technology Services (OTS) and was signed into law by Jindal as Act 712 of the 2014 Regular Legislative Session as part of an effort to consolidate information technology (IT) services across state agencies.

At the Department of Transportation and Development (DOTD), for example, the IT budget has not been reduced and in fact, may have been increased, according to sources within DOTD.

DOTD is paying for things under the consolidation that it has never had to pay for before, such as paying DOA to house the servers and mainframe (previously housed in-house at DOTD facility). DOTD is also paying more to DOA for services such as the LaGOV Enterprise Resource Planning System (ERP),    the state’s data warehouse which provides “end-to-end” support for statewide and agency-specific administrative business processes.

Moreover, DOA has not allowed DOTD to purchase new equipment (which was budgeted) for the last three years. As much as 40 percent of DOTD computer equipment is six years or older, making it difficult to design roads and bridges with modern software.

So, while some savings may have been achieved by other departments and some general fund money saved (of which DOTD uses none), DODT Transportation Trust Fund (TTF) money is not being saved.

And while some savings might be realized in the future, in the short term it is most likely paper savings.

All these attributes are what Kristy Nichols will take with her to Ochsner.

Posted in Budget, Contract, Contracts, DHH, DOA, Governor's Office, Higher Education, Lobbyist, OGB, Office of Group Benefits | 29 Comments »

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