House Appropriations asked DHH for an update on the upcoming budget Thursday.
“The deficit in our budget is $174.5 million in State General Fund,” Health Secretary, Dr. Rebekah Gee reported.
There were many questions about the public-private-partner hospitals, and renegotiations of those contracts.
“We’re $50.5-million short of State General Fund to get them where we think they should be,” Undersecretary Jeff Reynolds told the lawmakers. “And, just to be transparent with you guys, they think they need another $85.4 to get them where they want to be.”
Lake Charles Rep. Mark Abraham wanted to know, “Are the partnerships comfortable that 50-million will supply their needs?”
“Some are, and some have been willing to renegotiate,” Dr. Gee replied. ”And some have been more resistant to that.”
Committee chair Cameron Henry wanted to know how Chabert Hospital in Houma -- which had been on the chopping block – managed to be fully funded.
“Terrebonne General is the one who’s leasing that hospital, and, you know, with them being a hospital service district – a local governmental entity – CMS allows them to put up the match for those payments in the Medicaid program,” Reynolds explained.
In other words, the service district, not the state, is funding the Medicaid match.
Henry wanted to know what it would take for all of the partners to do something similar.
“Do you think all of them have the ability to do something like this?” Henry asked.
“Probably not,” Reynolds replied.
Despite that answer, Henry pressed on.
“If they were to start tomorrow, how long do you think realistically – is it a year process, two year process, six months?” the chairman inquired
“It’s probably, uh, you know, six months to a year,” Reynolds answered.
“Six months to a year? So this time next year,” Henry said, nodding.
You could almost see the wheels turning in his head.