Covering Louisiana

Apr 11, 2014 6:50 AM by AP (MGN Online)

Federal funding delayed during review of LSU deals

Federal officials will withhold $307 million in Medicaid money from the state in June, if no agreement has been reached on financing plans for the privatized LSU hospitals.
The federal Medicaid office notified Gov. Bobby Jindal's administration about the payment delay this week.
Jindal's health secretary, Kathy Kliebert, said Thursday the announcement was expected because of continuing negotiations over financing plans for uninsured care at LSU hospitals that have been privatized.
Most of LSU's charity hospitals were turned over to private managers, but federal officials haven't decided yet whether they'll agree to the money arrangements used to pay the new hospital operators.
Kliebert says the "deferral of funds" is normal when such negotiations are ongoing.
But the notification is certain to intensify concerns among lawmakers who've worried about federal approval.

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