ISSUE

In 2012, Louisiana was unable to support the state-run safety net hospital system responsible for providing healthcare to nearly one million indigent and uninsured people statewide and employing over 8,000 people in ten facilities. Employees were in jeopardy of losing their jobs, and patients were in jeopardy of losing their access to healthcare should the system close. Louisiana was faced with the prospect of privatizing the management of the safety net system.

STRATEGY

TPG identified hospital operators for each facility in geographical regions that could successfully deliver healthcare needs without putting the operator at risk. We began negotiations between state agencies and healthcare management entities to establish a memorandum of understanding for each hospital, acceptable under federal and state law, and worked with the Louisiana Legislature to ensure adequate funding was and remained in the state budget. 

All ten facilities agreed on a viable plan to not only transition and improve healthcare, but also maintain the operations of the Louisiana State University Medical Schools in New Orleans and Shreveport.

RESULTS

Graduate Medical Education now takes place in each of these facilities; services have drastically improved and various specialties have been added; and money was saved in the state’s budget. After negotiations, the hospitals agreed to form the Alliance of Public-Private Hospital Partners to address common issues related to the management agreements. 

TPG continues to represent the individual facilities, providing legislative outreach, community development, and operational assistance on matters relevant. We protect their funding sources and commitments made on the regulatory, legislative, and executive levels of government. We also facilitate meetings and assist with internal and external communication as needed.