Tuesday, September 2 2014 10:07 AM EDT2014-09-02 14:07:52 GMT
Labor Day weekend has a special significance for alligator hunters in Mississippi. A few days into the start of this year's hunting season, a record-setting 756-pound gator was caught by Robert MahaffeyMore >>
Labor Day weekend has a special significance for alligator hunters in Mississippi. A few days into the start of this year's hunting season, a record-setting 756-pound gator was caught by Robert Mahaffey of Brandon in the first weekend of the season.More >>
BATON ROUGE, LA (WAFB) -
privatize hospitals within the LSU system could cost the state of Louisiana
about $67 million up front and up to $26 million each year.
are from a report by the Louisiana Legislative Auditor.
More than 1,700
jobs have already been cut from the seven hospitals and another 5,200 in all
are expected to be eliminated.
Ernest Summerville Jr., a CPA with the
Legislative Auditor's Office says one of the problems with the privatize
initiative is that not all of the contracts have been signed.
changing management groups, so it's a big distinction in the two," says
Summerville. "So in that lease agreement is where all the details are and
that's what were waiting to see that is where we will learn about the actual
The report said
the state will owe $32 million in termination pay and unemployment benefits
when the privatization is complete.
The administration says they do not agree. In a statement released Monday night:
LSU will utilize lease payments to address a portion of term pay costs, and
any remaining costs will be addressed with supplemental funds. We
disagree with the unemployment costs projected in the report, which were based
on an assumption that 91 percent of employees would seek unemployment, when in
fact LSU expects that same percentage of employees or higher will be hired for
jobs with the private hospitals assuming the operations. Also, the retiree
legacy costs cited in the report have already been included in DHH's budget for
FY 14. What the auditor's office left out of
this report is that, based on their own analysis, the hospital partnerships
will reduce the state's UAL (the debt of the retirement system) by $300
million, and they will reduce the annual costs of the retirement system to
government agencies by $82 million.