Budget Cuts Cause Problems for LSU's Medical Schools

Executives from Baton Rouge-based Louisiana State University Health System say downsizing the system's hospitals will create an $83 million shortfall in the budget for medical school programs, according to a San Francisco Chronicle report.

The LSU board recently approved a plan to trim $151.8 million from the operations of seven LSU hospitals in the southern region of the state, but other cuts are due to hit three hospitals in the northern region as well. The cuts will lay off nearly 1,500 employees, effective January 2013.

Frank Opelka, MD, LSU's executive vice president of healthcare and medical education redesign, said medical school funding hinges on revenue from hospital operations. Reductions to bed capacity and services at the seven hospitals will ding revenue by an estimated $53 million, according to the report.

Dr. Opelka said leasing some of its hospitals to the private sector could be one strategy "to shrink the hole," according to the report.

More Articles on LSU Health:

E.A. Conway Medical Center in Louisiana to Lay Off 38 Employees
LSU Health System to Slash 1,500 Jobs in New Austerity Plan
LSU System Allows All 10 LSU Hospitals to Seek Partners


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