$1.1B LSU University Hospital Construction Proposal Requires No State Borrowing

A new proposal for the $1.09 billion Louisiana State University Medical Center in New Orleans would not incur any state debt, according to a Times-Picayune report.

This model would reduce the project's price from the initial $1.2 billion price tag and distribute part of the construction cost to a third party. The hospital would also receive an average annual state appropriation of $52.5 million during the first six years of operation.

The proposed budget assumes the state would use $930 million in cash to build patient towers and the other hospital areas while the LSU Physicians Foundation would finance the $100 million ambulatory care center through its own bonds.

University Medical Center is also receiving millions of dollars in state support from Hurricane Katrina damage to Charity Hospital.

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