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PAR: LSU hospital deals may face future shortfalls - KTBS.com - Shreveport, LA News, Weather and Sports

PAR: LSU hospital deals may face future shortfalls

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The financing structure for Gov. Bobby Jindal's privatization deals for the LSU network of hospitals and clinics is risky and may run into shortfalls within five years.

That's the assessment in a report released Friday by nonpartisan policy research organization the Public Affairs Research Council of Louisiana, or PAR.

PAR reviewed the contracts that turned over university-run hospitals and clinics around the state to private managers.

Jindal describes the privatization as a cost-cutting move to save the state more than $100 million this year, while improving services and medical training.

But PAR says the financial arrangements may not be feasible after Jindal has left office. That's because a sizable portion of the contracts is paid with funding for federal uninsured care -- funding slated to shrink nationwide, starting in 2018.

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