LSU changes deal on Charity Hospital

• By JORDAN BLUM
• Advocate Capitol News Bureau
• Published: Jun 22, 2009 - UPDATED: 7 p.m.

• Print
• Email
• Save
• Reprints
• Twitter
• Share

• Del.icio.us
• Digg
• Facebook
• Reddit
• 

The LSU Board of Supervisors rejected a compromise agreement Monday for a new academic medical center in New Orleans and instead approved an amended version that gives LSU expanded authority.

The state’s health chief last week released a proposed “draft” agreement that would create a private, nonprofit organization to finance and operate the planned $1.2 billion academic medical center to replace the shuttered Charity hospital.

The agreement attempted to resolve tensions between LSU and Tulane University. It formed a 12-person, independent operating board with four LSU representatives.

But the LSU Board on Monday instead approved a plan for an 11-member board with five LSU representatives. Tulane would have one representative on the board in both versions.

LSU System President John Lombardi said he expects Tulane to next consider the amended agreement. Tulane’s board signed off on the original agreement draft on Friday.

“There’s always a lot of tensions when you try to have two institutions operating one hospital,” Lombardi said after the 12-2 vote by the LSU Board.

LSU board members argued that the LSU System should have more authority because it is putting up the money and holding all the liability.

“It’s our credit card, and somebody else is going to lunch on it,” Lombardi said after the meeting.

LSU Board member Rod West of New Orleans said he is tired of hearing about supposed “power grabs” by LSU.

“LSU is on the hook and it is absolutely critical this (medical center) board has to support LSU’s academic mission,” West said. “We’re the ones taking all the financial risk.”

LSU Board member Dr. Jack Andonie of New Orleans said that Tulane took advantage of a good relationship with LSU by developing the habit of taking patients with insurance to Tulane Medical Center and sticking LSU with the indigent.

Last week’s compromise board had four members appointed by LSU, one by Tulane, one by Xavier University and another on a rotating basis by Delgado Community College, Dillard University and Southern University. Another five board members would have no university affiliation.

The LSU Board’s counter offer gives LSU five members and lessens the independent board members from five to three.