LSU has pulled the plug on its contract for Biomedical Research Foundation of Northwest Louisiana operation of public hospitals in Shreveport and Monroe.
LSU served formal notice to the Foundation, citing breach of the public purpose set forth in the cooperative endeavor agreement. CEA. Under that agreement, BRF must withdraw as the parent company of University Health System, LSU officials said.
The move comes after failed negotiations between LSU and BRF that began in early July.
The deal has been fraught with controversy from the beginning.
It was one of the agreements struck as Gov. Bobby Jindal moved to turn management of LSU hospitals around the state to private management.
“We have exhausted all avenues to resolve our differences amicably and now must take action that we hoped would not be necessary,” LSU President F. King Alexander said in a statement. “We want to secure operational and financial stability through a viable partnership, so we can continue to ensure both high quality healthcare and medical education.”
In an effort to ensure the continued operation of University Health Shreveport and University Health Conway, a new group of civic leaders will take over “to bridge the transition to a new operating partner,” LSU said.
The entity is Academic Health of North Louisiana Hospital Management Company Inc. The non-profit corporation registered with the Secretary of State’s office Wednesday. William Comegys III, a Shreveport attorney, is listed as the only officer. LSU said board members will be announced soon.
“Patients, hospital staff and the community at large can rest assured that the University Health hospitals will continue to operate as usual during this period,” Alexander said. “LSU pledges its continued commitment to provide unparalleled medical care in the Shreveport and Monroe communities.”