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LSU heading toward legal dispute over University Health contracts

A contract dispute between Biomedical Research Foundation and Louisiana State University is well on its way toward ripening into a full-fledged legal dispute.

The foundation had apparently obtained contracts to operate two northern Louisiana safety net hospitals owned by Louisiana State University—University Health in Shreveport and University Health-Conway in Monroe. Those agreements, which connected to Governor Jindal’s privatization of Louisiana’s charity hospital system, included specific terms, the performance of which is in dispute.   

LSU claims that the foundation breached its agreements by failing to work collaboratively with LSU, by failing to promote the academic mission and reputation of the LSU, and failing to establish a “sustainable and competitive” business model. As in every contract dispute, the foundation doesn’t agree with the accusations.

The claims are disputed on the grounds that the foundation claims to have improved the quality of services by reducing patient referral backlogs and reestablished University Health as a Level 1 trauma center, and reducing patient complaints. In addition, the foundation says that it brought about financial stability for the hospitals, increasing earnings by $80 million. The bottom line, it seems, is that the foundation denies that any breach of contract occurred.

Contract disputes frequently arise in business interactions, of course, and it is important for businesses to understand their rights when issues come up. When a dispute as to the interpretation or performance of contract obligations arises, it is important to work with experienced legal counsel to navigate the issues and get the matter resolved as quickly as possible. 

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