The Louisiana Commission on Streamlining Government met Tuesday afternoon to discuss the uncertain future of the New Orleans Charity Hospital and to consider recommendations for cutting costs to state government.State Treasurer John Kennedy, chairman of the committee, said the commission voted seven to three to contract an independent study of the hospital, which has been closed since it was destroyed during Hurricane Katrina.”Everything would be on the table,” Kennedy said. “There has never been a truly objective study of the hospital’s impact, in my opinion.”Kennedy said the study would look at different options for reviving the hospital — from purchasing an existing hospital to remodeling the destroyed site.Kennedy said building a brand new hospital could cost the state at least $1.2 billion. He said refurbishing the old site would save the state from $400 million to $500 million.The commission also voted unanimously to cut costs to state Medicare services by limiting the number of prescription drugs covered by Medicare and opting to use more generic drugs.Kennedy said the decision would save a minimum of $40 million and could potentially save the state $100 million.The commission also discussed reducing the administrative costs of the Louisiana Department of Health and Hospitals by 20 percent, which would achieve an annual saving of $50.4 million.Goals for restructuring and consolidating several state government agencies were also laid out and planned.Tuesday was the first of a two-day meeting of the Streamlining Commission. Committee members met to discuss these issues in two sets of sessions which lasted from 9 a.m. until almost 6 p.m.Commission members will meet again today to continue discussing money-saving recommendations for Gov. Bobby Jindal and other state agencies.The commission last approved recommendations to cut state spending Oct. 26.In that meeting, the commission agreed to advise the state to limit the number of emergency room visits for treatment of non-emergency medical conditions for Medicaid enrollees to two trips annually.They also approved a recommendation to keep state prisoners who have not passed the General Education Development test from being eligible for probation or parole until they pass the test.The state was also advised to prohibit state appropriations for all non-government entities and charities.
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Group votes to study hospital
November 17, 2009