W.O. Moss Regional Medical Center and Lallie Kemp Regional Medical Center will see the largest cuts in the LSU health care system according to a plan submitted to Board of Supervisors on Friday.
The plan will cut approximately $50 million from public hospitals and clinics. The hospitals would reduce the amount of money spent on recruiting and training faculty in order to deal with cuts. In addition, doctors would take less money for their contracts. New equipment purchases are also being delayed.
Nearly 35 percent of Lallie Kemp’s budget is being cut. The cuts begin Monday.
John George, chairman of the board’s Health Care and Medical Education Committee, said the committee is continuing to look for creative long-term ideas to lessen reduce costs. The measure enacted Friday is only a temporary fix.
“If there is a plan from Mars we will look at it” George said. “We are open to any and all plans. A decision isn’t going to happen overnight about how to take care of the funding. We are going to continue to look at our options to try to come up with another plan.”
If the board is unable to find a way to lessen long-term expenditures, the health care system will be faced with more cuts. The board selected R. William Funk & Associates, a Dallas-based firm, as the presidential search committee earlier in the day. Blake Chatelain, chairman of the board’s Presidential Search Committee, said the firm submitted a bid for $120,000, excluding expenses.
Discussions also centered around budget cuts at other institutions in the LSU system. Each chancellor took the opportunity to discuss budgetary problems at their institution. Michael Martin, Chancellor of Louisiana State University and Agricultural and Mechanical College, said the University was able to save money by consolidating many entities.
“We benefit from the fact that LSU A&M continues to perform well,” Martin said. “We have generated some savings on the administration side from the consolidation of several units into the College of Human Sciences and Education as well as several programs in the College of Engineering. We will soon do a few more in the College of Business.”
Board member Stephen Perry followed-up Martin’s comments by asking about the possibility of a faculty salary raise.
“How much would a one percent increase equal?” Perry asked. “I almost wonder if it would be worth it to create an artificial shortage in order to give faculty a raise.”
Bill Jenkins, Interim System president, addressed the issue by saying “the University cannot go another year without an increase.”
A new master plan for LSU Agcenter’s Burden Center was also approved. It will add botanical gardens to the front of the property and expand conference space.
____ Contact Joshua Bergeron at [email protected]
Board finds temporary fix for cuts to hospitals
July 26, 2012