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Lafayette General Health warns that it will stop running UHC unless the Legislature fully restores funding to the hospital

The gist

LGH President David Callecod issued a stern warning to Gov. John Bel Edwards(https://lapolitics.com/wp-content/uploads/2018/04/UHC-040318-.pdf) that if the Legislature can’t find money to fund Lafayette’s University Hospital & Clinics, which LGH runs on the state’s behalf, then LGH would be forced to stop operating the training hospital and its urgent care clinic. Callecod put a June 30, 2018, deadline, the end of an “anticipated” special session, before LGH would vacate UHC and fire its 800 employees. LGH would also demand a refund of the “unused portion” of its near $16 million in prepaid rent for this year.

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Some background

LGH took over operations of UHC in 2013. Previously, LSU’s medical school had run the hospital as a teaching facility. Under LGH’s management, the hospital still serves as a training ground for the state’s medical residents and as an essential source of care for Lafayette’s disadvantaged. The urgent care clinic at UHC, which LGH opened after assuming control, takes Medicaid payments. It’s one of the only clinics in town that does that. Callecod’s letter notes that the facility served 54,000 patients last year, many of them poor and uninsured.

The takeaway

Callecod signaled this move last month(http://www.katc.com/story/37718147/lafayette-general-health-warns-uhc-will-close-if-lawmakers-cant-find-solution-to-budget-crisis). Gov. Edwards’ proposed budget, announced at the beginning of this year, cut $650 million in state health funding, precipitating this confrontation. While it may not be surprising, it nevertheless shows just how bad things have gotten around the state’s budget deadlock. Jeremy Alford of LaPolitics reports that Callecod’s threat is not empty rhetoric. Should LGH follow through, the economic and social impact would be tremendous.

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