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Louisiana State University president considering lawsuit

If you use the hospital systems in Shreveport or Monroe, then you may know that they've been under some financial stress. The Louisiana State University president is in talks to decide if he will launch a breach of contract lawsuit against the Biomedical Research Foundation of Northwest Louisiana, the company that now runs the LSU hospitals in both Monroe and Shreveport. The foundation took over the LSU Monroe and Shreveport hospital branches in 2013 when the university-run public hospital was being pushed into privatization. Unfortunately for the hospitals, when the Biomedical Research Foundation won the contract to take control, it had never run a patient care facility, making it more difficult for the company and university system to work together.

A chairwoman for the LSU Board of Supervisors has reported that the partnership that was expected never developed. Now, the university is willing to take any steps necessary to determine if a breach of contract has been made.

The hospitals are now struggling financially, and the foundation had accused the university system of mismanaging the systems. However, an outside source determined that the privatization of the Shreveport hospital in particular had made serious financial and management tensions that now threaten the medical school nearby. With the financial viability of the hospital's business model in question and poor working relationship between the LSU organization and University Health management, lawmakers have started to become concerned about the hospital's place in the cities.

On top of these concerns, a hospital manager at LSU has now made a complaint that the foundation had possible contracts that would lend out LSU doctors to a competing care provider, making them provide specialty care for the competitor's health system. This would defeat the purpose of running a competing health system completely.

Source: Associated Press, "Decision on lawsuit against Shreveport hospital manager rests with university system president," Melinda DeSlatte, June 19, 2015

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