In 2012, due to a reduction in the funding levels of Federal reimbursement, Louisiana was unable to support the safety net hospital system managed by the State. This system was responsible for providing care to nearly 1 million indigent and uninsured people statewide, and employing over 8,000 people through ten facilities.
The Picard Group was called by the then Secretary of the Department of Health and Hospitals to assist with the transition. TPG successfully assisted in negotiations between the State and the various management entities to establish a memorandum of understanding for each hospital acceptable under Federal and State law.
All employees were in jeopardy of losing their jobs and the patients were in jeopardy of losing their access to care should the system be closed. The Administration was faced with the prospect of privatizing the management of this safety net system.
Local hospital operators needed to be identified for each facility located in a different geographical region. It was important to find a fit which could successfully deliver the healthcare needs tailored to that region without putting the operator at risk.
The Picard Group was asked to identify potential hospitals in three of the regions that could assume these management roles.
Thanks to The Picard Group, all ten of the facilities were able to come to an agreement on a viable plan which could not only transition the care, but also maintain the operations of the Louisiana State University Medical Schools in New Orleans and Shreveport.
Graduate Medical Education now takes place in each of these facilities, services have drastically improved and various specialties have been added, and money was saved in the State’s budget. Upon completion of negotiations, the hospitals agreed to form the Alliance of Public-Private Hospital Partners, to address common issues related to these management agreements.
The Picard Group continues to represent the Alliance providing legislative outreach, community development, and operational assistance on all matters relevant to the collective body. We protect their funding sources and the commitments that were made to them on the regulatory, legislative, and executive levels of government. As an association, we organize the group’s monthly meetings and handle their internal communication as well as external releases and publications.