Lafayette (La.) General Health issued letters to nearly 800 employees April 30 warning them of termination if the state doesn't provide sufficient funding to its subsidiary Lafayette-based University Hospitals and Clinics by June 30, according to the Daily Advertiser.
LGH, which is a $750 million hospital network, entered into a public-private partnership with the state to operate UHC in 2013. UHC serves more than 54,000 patients annually, many of whom are on Medicaid.
Health network officials argue the lack of funds from Louisiana, which is grappling with a $1 billion shortfall, breaches the partnership agreement they signed in 2013. Further, LGH President David Callecod argues, "The continued reduction in funding for UHC makes its operation untenable and creates systemic risk for our not-for-profit, community-owned health system."
In a letter to Louisiana Gov. John Bel Edwards April 3, LGH officials called on the state to fully fund the hospital by June 30.
In case the state does not offer this funding, LGH issued "warn" letters to all of its UHC employees two months before the end of this fiscal year, which ends June 30.
At the same time, LGH began a "Save UHC" movement. Teams of employees at UHC are encouraging all workers, patients and residents to contact elected officials, urging them to fund the hospital.