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Regular Session, 2013
SENATE RESOLUTION NO. 28
BY SENATOR MURRAY
LEGIS POWERS/FUNCTIONS. Requires submission for approval by the Senate
Committee on Finance of any cooperative endeavor arrangements between the LSU Board
of Supervisors and a private entity involving the change in management of a public hospital.
A RESOLUTION1
To direct the LSU Board of Supervisors to submit to the Senate Committee on Finance for2
approval of any cooperative endeavor agreement that transfers the management and3
operation of a state owned hospital to a private entity.4
WHEREAS, the state of Louisiana has historically provided health care to its5
indigent and uninsured citizens through state owned and operated hospitals; and 6
WHEREAS, the control and operation of the state owned hospitals was transferred7
to the Board of Supervisors of Louisiana State University, hereinafter the "board", in 1997;8
and9
WHEREAS, state law provides that the board shall own and operate and have the10
responsibility for the operation and management of the following hospitals, including all11
programs and facilities thereof, which shall be under the immediate direction of the LSU12
Health Sciences Center at New Orleans, subject to the overall direction, supervision, and13
management of the board:14
(a) Medical Center of Louisiana at New Orleans.15
(b) Earl K. Long Medical Center in Baton Rouge.16
(c) University Medical Center in Lafayette.17
(d) Leonard J. Chabert Medical Center in Houma.18 SR NO. 28
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(e) Lallie Kemp Regional Medical Center in Independence.1
(f) Bogalusa Medical Center in Bogalusa.2
(g) W. O. Moss Regional Medical Center in Lake Charles.3
(h) University Medical Center in Baton Rouge; and4
WHEREAS, state law further provides that the board shall own and operate and have5
the responsibility for the operation and management of the following hospitals under LSU6
Health Sciences Center-Shreveport, including all programs and facilities thereof subject to7
the authority of the board to direct, control, supervise, and manage the hospitals:8
(a) University Hospital Shreveport.9
(b) E. A. Conway Medical Center in Monroe.10
(c) Huey P. Long Medical Center in Pineville; and11
WHEREAS, the board has announced that it intends to enter into public private12
partnerships with private entities whereby the hospital facilities will be leased or occupancy13
will be otherwise granted to the private entity and the private entity will assume14
responsibility for the hospitals' management and operations, all as to be described in a15
cooperative endeavor agreement, which will result in the termination of the employment of16
the current state employees in those hospitals, and the effective closure of the public17
hospitals; and18
WHEREAS, the board, the Louisiana Department of Health and Hospitals and the19
state of Louisiana, through the division of administration, have entered into memoranda of20
understanding regarding the following public hospitals:21
(a) With Louisiana Children's Medical Center and University Medical Center22
Medical Management Corporation regarding the interim successor hospital to Medical23
Center of Louisiana in New Orleans and upon its completion the new University Medical24
Center in New Orleans, Louisiana;25
(b) With Lafayette General Health System, Inc. regarding University Medical Center26
in Lafayette, Louisiana;27
(c) With Ochsner Health System and Hospital Service District No. 1 of the Parish of28
Terrebonne regarding L. J. Chabert Medical Center in Houma, Louisiana;29
(d) With Southwest Louisiana Hospital Association d/b/a Lake Charles Memorial30 SR NO. 28
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Hospital regarding W. O. Moss Regional Medical Center in Lake Charles, Louisiana;1
(e) With Biomedical Research Foundation of Northwest Louisiana regarding the LSU2
Medical Center - Shreveport in Shreveport, Louisiana and E.A. Conway Medical Center in3
Monroe, Louisiana; and4
WHEREAS, the attorney general of the state of Louisiana issued an opinion and5
determined that the board does not need the approval of the legislature to lease an entire state6
hospital facility under the board's control and management; and7
WHEREAS, state law prohibits the closure of any hospital or emergency room under8
the authority of the board without legislative approval, which approval may be granted by9
the legislature either by concurrent resolution or by appropriate action in the General10
Appropriation Act; and11
WHEREAS, the opinion of the attorney general does not address whether the lease12
of an entire state hospital facility to a private entity constitutes the closure of the publicly13
owned hospital facility; and14
WHEREAS, the General Appropriation Act for Fiscal Year 2012-2013, namely Act15
No. 13 of the 2012 Regular Session of the Legislature, does not contemplate the closure of16
any of the publicly owned hospital facilities; and17
WHEREAS, Louisiana law further provides that prior to the confection of any18
cooperative endeavor agreement which would result or is expected to result in any nonpublic19
party to the agreement generating or expending revenue of one million dollars or more per20
year from the operation, management, or control of a state resource, the state agency shall21
inform the Joint Legislative Committee on the Budget of the proposed agreement and the22
Joint Legislative Committee on the Budget may hold a hearing on the agreement any time23
prior to the official confection of the agreement; and24
WHEREAS, given the important nature of the mission and purpose of these25
hospitals, including but not limited to the provision of access to high quality medical care26
for the most vulnerable patients including the medically indigent and uninsured, the27
development of medical and clinical manpower throughout the state in the various accredited28
residency and other health education programs, and the cooperative nature in which these29
hospitals work collaboratively with other healthcare providers and agencies to improve the30 SR NO. 28
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health outcomes of the citizens of the state, it is the right and the responsibility of the1
legislature to actively participate and deliberate on the management structure for these2
hospitals to ensure that they are operating efficiently and effectively in the best interests of3
the citizens of the state.4
THEREFORE, BE IT RESOLVED that any public private partnership between the5
Board of Supervisors of Louisiana State University and a private entity for the operation and6
management of a public hospital shall require the approval of the Senate Committee on7
Finance, and such approval shall be in addition to the requirements of R.S. 39:366.1 et seq.8
BE IT FURTHER RESOLVED that the LSU Board of Supervisors is directed to9
submit to the Senate Committee on Finance for approval of any cooperative endeavor10
agreement that transfers the management and operation of a state owned hospital to a private11
entity.12
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the13
governor of the state of Louisiana, the vice president of health affairs and medical education14
for the Louisiana State University System, the chancellor of Louisiana State University15
Health Sciences Center-NO, the chancellor of Louisiana State University Health Sciences16
Center-Shreveport, the chief executive officer of Louisiana Children's Medical Center, the17
chief executive officer of University Medical Center Medical Management Corporation, the18
chief executive officer of Lafayette General Health System, Inc., the chief executive officer19
of Ochsner Health System, the chief executive officer of Hospital Service District No. 1 of20
the Parish of Terrebonne, the chief executive officer of Southwest Louisiana Hospital21
Association d/b/a Lake Charles Memorial Hospital, the chief executive officer of22
Biomedical Research Foundation of Northwest Louisiana, the secretary of the Louisiana23
Department of Health and Hospitals, and the commissioner of administration.24 SR NO. 28
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Murray SR No. 28
Requires submission for approval to the Senate Committee on Finance of any public private
partnership between the Board of Supervisors of Louisiana State University and a private
entity for the operation and management of a public hospital.
Directs the LSU Board of Supervisors to submit to the Senate Committee on Finance for
approval of any cooperative endeavor agreement that transfers the management and
operation of a state owned hospital to a private entity.