HLS 13RS-3330 ORIGINAL
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Regular Session, 2013
HOUSE CONCURRENT RESOLUTI ON NO. 140
BY REPRESENTATIVE HUNTER
PRIVATIZATION: Directs implementation of certain requirements for private contractors
as conditions for privatizing the operation of any state hospital
A CONCURRENT RESOLUTI ON1
To direct the division of administration, the Department of Health and Hospitals, and the2
Board of Supervisors of Louisiana State University and Agricultural and Mechanical3
College to implement certain requirements for private contractors as conditions for4
privatizing the operation of any state hospital.5
WHEREAS, because the essential financial and health policy aspects of cooperative6
endeavor agreements to privatize state hospitals are being developed in secret, the following7
matters remain unknown to the Legislature of Louisiana as of the date of filing of this8
Resolution:9
(1) Whether the privatization effort will result in cost savings or cost increases to the10
state.11
(2) Whether the privatization effort will improve or jeopardize graduate medical12
education and physician training programs.13
(3) Whether the privatization effort will enhance or diminish access to health care14
by those with the greatest need; and15
WHEREAS, neither the Legislature of Louisiana nor any committee thereof has16
statutory authority to approve cooperative endeavor agreements to privatize state hospitals;17
and18
WHEREAS, the legislature has sought such approval authority through House19
Concurrent Resolution No. 74, House Resolution No. 42, and Senate Resolution No. 28 of20
the 2013 Regular Session of the Legislature; and21 HLS 13RS-3330 ORIGINAL
HCR NO. 140
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WHEREAS, while one of the aforementioned legislative instruments has been1
adopted as of the date of filing of this Resolution, the legislative committee vested with2
approval authority by the instrument has openly disregarded the instrument's provisions; and3
WHEREAS, if the legislature will continue to be denied any authority to approve4
agreements to privatize state hospitals, then this branch of state government should, at5
minimum, be able to direct certain requirements and conditions for private entities which are6
set to take on this vital public function in our state.7
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby8
direct the division of administration, the Department of Health and Hospitals, and the Board9
of Supervisors of Louisiana State University and Agricultural and Mechanical College to10
implement the following requirements for private contractors as conditions which shall be11
satisfied prior to privatizing the operation of any state hospital:12
(1) The private entity shall disclose to the state parties to the cooperative endeavor13
agreement its audited financial statements for each of the ten years preceding the date on14
which it will assume operation of a state hospital. The financial statements shall be audited15
by a certified public accounting firm approved for this purpose by the commissioner of16
administration. The commissioner may determine and require that additional information17
be submitted with the audited financial statements.18
(2) The private entity shall disclose to the state parties to the cooperative endeavor19
agreement the patient payor mix for each hospital that it currently owns for each of the ten20
years preceding the date on which it will assume operation of a state hospital; or all years21
of operation of a currently owned hospital, if it has been owned by the private entity for less22
than ten years. The payor mix report shall disclose, at minimum, the proportion of health23
services financed at each of the private entity's hospitals by the following payors for all years24
required herein:25
(a) Medicaid.26
(b) Medicare.27
(c) Private insurance.28
(d) Private pay, as defined in R.S. 22:1202.29
(e) Prisoner care.30 HLS 13RS-3330 ORIGINAL
HCR NO. 140
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(f) Uncompensated.1
(3) The private entity shall disclose to the state parties to the cooperative endeavor2
agreement the salaries of all company executives, hospital administrators, physicians, nurses,3
allied health professionals, and ancillary hospital staff persons it employs. 4
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the5
office of the governor, the commissioner of administration, the secretary of the Department6
of Health and Hospitals, and the chairman of the Board of Supervisors of Louisiana State7
University and Agricultural and Mechanical College.8
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Hunter HCR No. 140
Directs DOA, DHH, and LSU to implement the following requirements for private
contractors as conditions for privatizing the operation of any state hospital:
(1)The private entity shall disclose to the state parties to the cooperative endeavor
agreement its audited financial statements for each of the 10 years preceding the date
on which it will assume operation of a state hospital. The financial statements shall
be audited by a certified public accounting firm approved for this purpose by the
commissioner of administration. The commissioner may determine and require that
additional information be submitted with the audited financial statements.
(2)The private entity shall disclose to the state parties to the cooperative endeavor
agreement the patient payor mix for each hospital that it currently owns for each of
the 10 years preceding the date on which it will assume operation of a state hospital;
or all years of operation of a currently owned hospital, if it has been owned by the
private entity for less than 10 years. The payor mix report required herein shall
disclose, at minimum, the proportion of health services financed at each of the
private entity's hospitals by the following payors:
(a) Medicaid.
(b) Medicare.
(c) Private insurance.
(d) Private pay, as defined in present law.
(e) Prisoner care.
(f) Uncompensated.
(3)The private entity shall disclose to the state parties to the cooperative endeavor
agreement the salaries of all company executives, hospital administrators,
physicians, nurses, allied health professionals, and ancillary hospital staff persons it
employs.