Shreveport School of Medicine fiscal crisis linked to questionable financial management practices
The LSU School of Medicine in Shreveport has engaged in systematic submission of questionable invoices to University Health since hospital privatization began that suggest a pattern of poor fiscal management underlying the school’s current financial crisis.
Since 2011, long before hospital privatization began, LSU has drawn down more than $200 million in reserves in an attempt to balance its budget (see attached chart). Since privatization on October 1, 2013, University Health has paid LSU more than $380 million in addition to the annual state budget allocation it receives, and yet the medical school remains in such critical financial condition that the Louisiana Board of Regents recently put it on fiscal watch.
“Rather than attempting to wrongly blame the BRF and University Health for its fiscal crisis, LSU President King Alexander should be looking into the questionable financial practices at the School of Medicine,” said Steve Skrivanos, chairman of the University Health System Board of Directors. “Questionable financial management at the LSU School of Medicine is threatening one of north Louisiana’s most important assets and the community deserves transparency and
accountability from LSU at this critical time.”
Errors in invoices submitted by LSU to University Health for payment for physician and other services have occurred each month over the last three years requiring University Health to routinely adjust and correct LSU invoices to account for the errors.
Examples of the types of errors in the invoices LSU submitted to UH for payment include:
+ LSU overbilled UH more than $5.6 million for teaching, supervision and physician
services that included charges for physicians no longer on staff, physicians doublecounted
and residents who worked more days than actual days in the month
+ LSU overbilled UH more than $1.8 million for indigent care for patients
+ LSU failed to pay UH $2.2 million in cash it collected or received on behalf of UH
+ LSU incorrectly billed UH more than $900,000 because of math and calculation errors
Read more in the full news release from University Health found in the related documents section of this story.