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The economic recession has affected those in all walks of life, and medical care is no exception.
In order to combat the crisis, Gov. Bobby Jindal has submitted his Fiscal Year 2011 Budget to the state legislature.
Included is a proposal to reshape the structure of LSU system hospitals, and Leonard J. Chabert Medical Center officials are afraid cuts could force some LSU system hospitals like the Houma hospital to close their doors or reduce their services.
“This year the hospital finds itself in a precarious position,” said Chabert Medical Director Michael Garcia. “The budgets in the state along with the federal changes in healthcare are going to cost some things that we don’t all understand.”
Department of Health and Hospitals Secretary Alan Levine said beginning next fiscal year on July 1, the federal government made a $135.6 million cut to LSU’s allowable fund, also known as Disproportionate Share Hospital Fund (DSH).
To cover the cut, Jindal proposes replacing these lost DSH funds with $122.5 million from the State General Fund (SGF) and $13.1 million in federal funds for next fiscal year only.
Even though this strategy would cost the state astronomically in Medicaid dollars next year, Levine said this plan gives the state another year to develop a policy to transition the services of certain LSU system hospitals rather than close them in the future.
“I think anybody can make the argument that for one year to give us time to transition those public hospitals is probably smart to do, but we can’t keep doing this,” he said. “It’s silly for the state to pass up being able to match those dollars and draw down hundreds of millions of dollars for Medicaid.”
The governor’s proposal for keeping as many hospitals as possible open in the future directs LSU and DHH to develop a transition plan for some LSU system hospitals.
Levine said this plan is due by Jan. 1, 2011, and it will likely transform the types of care hospitals administer depending on the area’s needs.
“So for instance, there’s some areas in the state where the public hospital is the only hospital,” he said. “So you’ve got to keep those inpatient beds because without them there would be no access.”
However, Chabert will more than likely fail to fall into this category, because of its proximity to Terrebonne General Medical Center.
Levine said a potential option could be merging Chabert’s inpatient beds with TGMC.
“You could redirect those dollars to expanding the outpatient services,” he explained. “But for instance, if TGMC didn’t have enough beds available, and we couldn’t negotiate something with TGMC, then it wouldn’t make sense to not have the inpatient beds at Chabert, so it really is a community by community analysis.”
Although Levine does not know how Chabert will fit into the model yet, he says it is possible the hospital will have to accept a reduction in services in order to direct its remaining funds toward outpatient visits.
“You see about 162,000 outpatient visits [at Chabert]. That’s more than relevant. That would be devastating if we lost it, so it’s clear in that market we would say, ‘how do we transition Chabert that we can continue to do what we’re doing and provide that access,”‘ Levine explained.
The Terrebonne Economic Development Authority voted this past week to send a letter to Jindal and legislative comities in support of continuing to fund Chabert’s services, which Garcia said brings an economic impact of between $140 and $250 million to the area.
“Is the community getting its money’s worth for what the taxpayer pays? I think we’re going above and beyond that,” said Chabert Administrator Rhonda Green. “I think raising the public’s awareness that there are plans to alter or close the [LSU system] hospitals are something that needs to be done, because it not only affects the people that come here, but it affects the community as a whole, not only economically but educationally for the training programs.”
Chabert officials are worried that cuts to the inpatient and educational portions of their hospital could not only greatly reduce their workforce, but it could reduce the quality and amount of physicians in this area.
“We’re facing a primary care physician shortage in the next five years in this area, so training these doctors here and having them stay locally may plug that gap,” said Green. “We have research. We have a lot of things are going on that we think are pretty important.”
Jindal’s proposal could be altered before it comes up for vote in the Legislature.
“To close one of these [LSU system] hospitals takes legislative delegtion, and we have a very stanch support from our legislative delegation,” said Green.
Flags hang outside of the Chabert Medical Center on Monday. The local hospital is unhappy about projected budget cuts that could take them out of the LSU system. * Photo by MICHAEL DAVIS
