Health Care, Gulf Coast Rebuilding Sectors
- Pre-Katrina, Louisiana ranked among the highest in the nation in terms of costs, and among the lowest in terms of quality indicators.
The need for fundamental change in the state's health care financing and delivery system was widely acknowledged.
- To date, HHS has provided the Gulf Coast region with more than $2.7 billion to assist in funding for health care and social services.
Of these funds, HHS has provided more than $1.4 billion in federal resources to cover Louisiana's health care costs, including expenses for serving its uninsured residents, providing mental health services, and paying the state's share of its Medicaid program in hurricane-affected parishes.
- OFC consulted closely with the U.S. Department of Veterans Affairs (VA) regarding plans for rebuilding the New Orleans VA Medical Center.
- On August 21, 2007, VA Secretary Nicholson announced that the VA will rebuild its medical center in downtown New Orleans.
This decision will not only ensure top-notch care for the region's veterans, but will also advance the economic recovery of New Orleans.
- On May 24, 2007, HHS announced $195 million in health care grants, authorized under the Deficit Reduction Act.
- $100 million will support primary care clinics in the greater New Orleans area, including $4 million for the New Orleans Health Department
- $60 million will provide financial relief to hospitals in Alabama, Louisiana, and Mississippi dealing with higher labor costs (on top of the $71 million announced in January).
- On April 5, 2007, Secretary Leavitt traveled to New Orleans and joined Chairman Powell in visiting several primary care clinics.
- On January 18, 2007, Secretary Leavitt announced $ 71 million to help Louisiana's hospitals and nursing homes facing financial pressures associated with providing care in a post-Katrina environment. The Secretary also granted $15 million to help greater New Orleans recruit and retain outstanding physicians, psychiatrists, nurses and other health care professionals.
- $35 million will help greater New Orleans recruit and retain doctors, nurses, psychiatrists, and other medical professionals
(on top of the $15 million announced in January).
In early 2006, U.S. Department of Health and Human Services (HHS) Secretary Leavitt encouraged the formation of the Louisiana Healthcare Redesign Collaborative to pursue reforms consistent with agreed principles. HHS has provided extensive technical assistance to support the Collaborative's efforts to redesign the state's two-tiered “Charity system” of indigent care.
- Since that time, OFC has worked closely with HHS, as well as a number of public and private local stakeholders to promote and facilitate these reform efforts. In spite of a number of difficult and contentious issues, OFC worked to foster a productive working relationship between HHS and the state, primarily through the Louisiana Recovery Authority and Louisiana Department of Health and Hospitals, and among different local stakeholders.
- OFC also continues to work closely with HHS and local health stakeholders to ensure that short-term health care needs are being addressed.
The primary vehicle for addressing these short-term needs is the pool of money allocated through the Deficit Reduction Act of 2005.
OFC worked closely with local stakeholders to gauge their needs, shared input with HHS, and worked with HHS.
- OFC will continue to evaluate the ongoing needs of the health care recovery in New Orleans, the most affected area.
OFC is engaged in assessing potential adjustments to Medicare reimbursement rates, the stabilization of graduate medical education, and the ongoing challenges faced by private hospitals.
This page was last modified on October 23, 2007
