The deal to transfer control of University Health Hospitals in Shreveport and Monroe from BRF to Oschner has been agreed to and should become effective October 1st. The 294-million dollar deal with Oschner is a 40-million dollar increase over the current contract with BRF.

Commissioner of Administration Jay Dardenne says it’s a fitting end to a long saga.

“We think this is an appropriate resolution of what has been a longstanding dispute, and we think this is going to give us some great opportunities going forward.”

The contract is for 10 years, with two five year extension options.

LSU now return to a more direct management of the facility that trains hundreds of LSU medical students every year. The university and BRF clashed often since BRF took over in 2013. Dardenne says the new partnership should lead to expanded services, and provide a more fertile training ground for the state’s future doctors.

“It’s going to be a great opportunity, and hopefully some expansion of the type of services that are available, and an improvement on the quality situation, which has always been ok, but we think can be better.”

BRF will receive a 13 million dollars as a result of the transfer.

Some may be concerned about the price tag of the new partnership enterprise between LSU and Oscher, but Dardenne says despite the larger contract number, the total expense to the state will remain the same.

“There will be an increased expense overall, but that will not involve federal dollars, that will involve federal matching dollars that were going to be able to draw down to assist with medical education and the delivery of healthcare.”

LSU’s governing board must still accept the contract, and the legislature will have a chance to review it before it the deal is set in stone.