Cuts could shutter LSU hospitals

Published 12:00 am Saturday, February 7, 2009

BATON ROUGE (AP) — LSU would close some of the 10 public hospitals in Louisiana under the most severe budget cuts being considered by the Jindal administration, a university official said Friday.

‘‘The worst case scenario, we’d have to close hospitals in several places,’’ said Fred Cerise, LSU vice chancellor for health affairs and medical education.

Cerise wouldn’t say what hospitals would be on the list because the cuts remain uncertain. He said one proposal would convert the university-run hospitals in Lake Charles and Independence to outpatient clinics that no longer provide emergency services and inpatient care.

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Under the most severe scenarios, the charity hospitals would face $58 million in cuts in the new ficsal year that begins July 1 — plus further uncertain reductions in money for Medicaid and uninsured care that hospitals receive for providing care.

The 10 hospitals receive well over $1 billion, but Cerise said the cuts would force closures because they would eat at the only unrestricted pools of funding the hospitals have to operate.

Other types of money the hospitals receive, like Medicaid, Medicare and uninsured care, come with strings on the types of services and items for which they can pay. The hospitals use the state general fund dollars, Cerise said, to cover needed items that a hospital can’t operate without, like some doctor expenses and nurse anesthetists.

Cerise said LSU would present its hospital cut proposals to Gov. Bobby Jindal’s budget crafters on Monday.

‘‘We’re trying not to sound the panic alarm because it’s so early in the process,’’ he said.

Jindal’s financial advisers asked state agencies to propose how to reduce their spending next year, and each department was given a target cut figure as the state copes with an expected $1.2 billion drop in general fund income for the next fiscal year.

But Commissioner of Administration Angele Davis, the governor’s top budget adviser, said the figures were preliminary and don’t necessarily reflect what will be suggested when the governor’s 2009-10 budget proposal is delivered to lawmakers in mid-March.

State lawmakers hope the federal economic stimulus bill in Congress will help provide bailout dollars, and they also are considering tapping into the state’s ‘‘rainy day’’ fund and other unspent government funds to stop massive budget cuts. After Jindal submits his budget recommendations, the Legislature will hammer out the final spending plan for next year.

On Friday, the University of Louisiana System, which operates eight public colleges across the state, also released its proposed cuts to cope with a more than $116 million worst-case scenario reduction.

University leaders said such cuts to the system’s $720 million annual budget would force them to lay off 700 professors and 800 other employees, temporarily furlough 3,000 employees for 10 days, cut 60 academic programs, shrink services, increase class sizes and cut scholarships. The cuts could jeopardize program accreditations and harm student education, they said.

McNeese State University President Bob Hebert compared the possible cuts to a series of hefty budget reductions levied on higher education in the 1980s.

‘‘For a decade following the cuts, we continued to pay the price because of the loss of programs, deteriorating buildings, negative impacts on recruiting, retention and graduation rates,’’ Hebert said in a news release.

The UL System includes eight schools: Grambling State University, Louisiana Tech University, McNeese State University, Nicholls State University, Northwestern State University, Southeastern Louisiana University, the University of Louisiana at Lafayette and the University of Louisiana at Monroe.