LEGISLATIVE AFFAIRS: Louisiana Health Care Commission

The Louisiana Health Care Commission met on Friday October 28th in New Orleans. Chairwoman Donna Fraiche convened the meeting. She introduced a new member of the Commission, Roderick Campbell, who is the new representative of the Louisiana Primary Care Association.

The Commission heard a report on the new University Medical Center in New Orleans from Doreen Brasseaux, assistant vice-president of public policy, LSU Systems Office of Health Affairs and Medical Education and Thomas Rish, architect, Office of Facility Planning, Division of Administration. The stated goal in building a new University Medical Center is to restore high quality publicly provided healthcare to the residents of New Orleans, formerly provided by Charity Hospital. The new hospital will have a total square footage of 2,195,744.

This includes the ambulatory care building, the hospital, the LSUHSC Connector, a parking garage and the utility building. To clear the way for the new University Medical Center, site clearance of Pallas Hotel, McDonogh School and remaining buildings will take place now through February 15, 2012.

The guaranteed maximum price increments are as follows:

  • Advanced Construction Start – $3 million
  • Site, D&T, Patient Towers – $523 million
  • Ambulatory Care and Garage – $132 million
  • Utility Building and Connector – $38 million
  • Grand Total – $696 million

The economic impact of this new hospital has been estimated by the BioDistrict, which estimates that in five years, the UMC, VA Medical Center and the BioDistrict will create or save 5,500 permanent jobs with an additional 4200 indirect jobs. The projections are as follows:

  • Annual Personal Income – $350 million
  • Annual State Tax Revenue – $25 million
  • Annual Local Tax Revenue – $22 million

The UMC construction workforce at its peak will involve 2500 people and 1900 indirect jobs for a total of a workforce of 4400. They anticipate 300 separate sub-contracts.

The Commission heard a report on the new Veterans Administration Hospital in New Orleans from Liz Failla, project legacy engineer/ coordinator, Southeast Louisiana Veterans Health Care Center.

The Commission heard a report on the work of the BioDistrict New Orleans from Bonita Robertson. The BioDistrict was created by the Louisiana Legislature in 2005.  She stated that the goal of the BioDistrict is to build a globally competitive economy for the New Orleans region to diversify our opportunities and build a resilient community through innovation that results in the healthiest, safest, sustainable and most entrepreneurial urban neighborhoods in America.  The industries or area of expertise envisioned in the BioDistrict include HIV/AIDS, cancer, diabetes and cardiovascular, bio-defense, vaccine development and neuroprotection and rehabilitation. The BioDistrict encompasses the Galvez Research Neighborhood, the Xavier/GERT Town, the Tulane Avenue/Canal Street and the downtown health campus. The key public investments projects total approximately $380 million.  In summary, the economic impacts of the BioDistrict are projected to as follows:

In twenty years, the BioDistrict will generate:

  • 17,200 in new or saved jobs,
  • $4 billion in economic activity,
  • $850 million in personal earnings,
  • $25 million in annual sales tax generated,
  • $22 million in annual local tax generated,
  • $1.8 million square feet of new or absorbed private sector facilities,
  • 2,000 + housing units,
  • 9 million square feet institutional uses.

The Commission heard a report on the work of the New Orleans BioInnovation Center from Aaron Misenich, president, New Orleans BioInnovation Center.  The BioInnovation Center is a $47 million facility funded by the Louisiana Department of Economic Development. They have also received grant funding. Xavier, LSU Medical School and Tulane Medical School are all represented on the BioInnovation Center’s Board of Directors. Currently the Center is working with over thirty companies. Another initiative of the Center is the Louisiana Cancer Research Consortium. 

The companies currently housed in the Center have received an impressive $154 million in grant funding and have published 800 articles. The Bio-Incubator has laboratory and administrative space for bio-tech firms. Miscenich stated that on average, it takes five to ten years for a bio-technology to make it to the marketplace.

 

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