LHA: Don't Use Hospital Funds to Plug Budget Holes


LHA Statement to the Media Regarding Community Hospitals and the State's 
Budget Approach 

April 23, 2010

The Louisiana Hospital Association and its members oppose using hospital 
Certified Public Expenditures (CPEs) to plug budget deficits or revenue 
shortfalls. CPEs are expenditures incurred by locally-owned service 
district hospitals that can be used to draw down matching federal 
healthcare dollars. These funds should be utilized to protect services 
provided to patients in their own communities.

The LHA and its members have been working with legislative leadership to 
create funding solutions for patients and communities, without 
increasing taxes or fees. One of these solutions is the Community 
Hospital Stabilization Fund, which is a "win-win" for the state and our 
communities. HB 1364 by Rep. Tom McVea and SB 711 by Sen. Sherri Cheek 
were filed this week to provide community hospitals with funding to 
reverse damaging Medicaid cuts to hospitals and to protect access and 
patient choice among quality-focused, cost-effective providers for all 
Louisiana residents. The bills utilize the federal matching funds 
generated through hospital Certified Public Expenditures to create the 
Community Hospital Stabilization Fund. We greatly appreciate the 
leadership of Rep. McVea and Sen. Cheek for this effort, and we urge 
other legislators to support this legislation. 

Community hospitals are committed to a healthy Louisiana, but they 
cannot afford to continue to be used as a vehicle to fund other 
priorities of the state. HB 1364 and SB 711 will generate needed 
funding so community hospitals can continue to provide vital, 
life-saving care to their communities 24/7. 

John Matessino, Louisiana Hospital Association President & CEO