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How Much Would Privatizing Most LSU Hospitals Cost Louisiana?

Bobby Jindal (Wikipedia User Gage Skidmore)
Bobby Jindal (Wikipedia User Gage Skidmore)

As part of his $24.7 million budget proposal, La. Gov. Bobby Jindal is pushing the transfer to private management of LSU hospitals. So what could this cost Louisiana?

The Louisiana Legislative Auditor’s office says layoffs caused by the Jindal administration’s push to privatize most LSU hospitals will cost the Bayou State about $42 million; $29-million in termination pay and another $13-million in jobless benefits. Officials say more than 5,200 people have been layed off at hospitals and clinics being handed over to private operators. Some, but not all, have been hired by the new operators.

Despite his critics, and there have been many, Gov. Jindal has not let that deter him from making his budget proposal a realization, saying that his proposal “continues to chart a path that expands economic opportunities for our people and protects education and healthcare funding while reducing government’s footprint.”

While healthcare, along with higher education, have seen numerous cuts for several years (including University Medical Center in Lafayette), Jindal says under his budget proposal there would be no decrease in funding to healthcare, along with education.

The budget eliminates more than 10,000 full time state employees and promises tens of millions of dollars more worth of savings through reforms of government programs and agencies. But, numerous lawmakers and officials are concerned about the realization that, if things don’t fall the way that Governor Jindal says he wants them to, could there be more budget cuts in the future for healthcare?

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