A Florida-based health care company has been named by the state Department of Health and Hospitals to take over at least partial operations of the state-run Southeast Louisiana Hospital, which for six decades made Mandeville synonymous with psychiatric care. The state's selection of Meridian Behavioral Health of Gainesville marks a watershed development in the months-long controversy that ignited in July...
A Florida-based health care company has been named by the state Department of Health and Hospitals to take over at least partial operations of the state-run Southeast Louisiana Hospital, which for six decades made Mandeville synonymous with psychiatric care. The state's selection of Meridian Behavioral Health of Gainesville marks a watershed development in the months-long controversy that ignited in July when the state unexpectedly announced plans to shutter SELH.
With the private company now part of the equation, St. Tammany Parish government and DHH are working on cooperative endeavor agreements with Meridian with the goal of keeping psychiatric beds on the hospital's campus on U.S. 190 east of Mandeville.
The negotiations could lead to an agreement that allows St. Tammany Parish the use of the state property and facilities. The parish could then enter into an agreement with Meridian and possibly other organizations to operate hospital, according to a press release from parish government.
"Our goal is to have a signed agreement in place in two weeks," said DHH Deputy Secretary Kathy Kliebert. "A lot of hard work has gone into continuing services at Southeast Louisiana Hospital, without increasing the burden to the taxpayers of Louisiana during tight budget constraints."
Southeast Louisiana Hospital The privatization of SELH has been discussed for months as an alternative to closing the facility, which serves patients from throughout the New Orleans area. On Sept. 13, DHH sought proposals from companies interested in taking over the hospital. Meridian was one of four to respond, offering a plan to operate the hospital at its current location with almost 200 beds. Local officials said they had several meetings with Meridian executives and were impressed with the company's plans.
Last week, the St. Tammany Parish Council approved two resolutions authorizing Parish President Pat Brister to execute cooperative endeavor agreement with DHH and an unnamed private provider, setting the stage for a private takeover.
"We have put in place working groups to address and work through the details that will allow the state, St. Tammany Parish and Meridian Behavioral Health to work towards signing an agreement to continue the psychiatric services our area desperately needs," Brister said Thursday in a release.
Catching local legislators off guard, DHH announced in July it would close the hospital as a way of helping offset the loss of federal Medicaid financing. A powerful backlash ensued with proponents of the hospital forming a committee and staging public rallies to call attention to the plight of hospital employees, patients and their families. Several local public bodies have gone on record to oppose the state's plan to close SELH, which currently has a staff of 407.
Rita Breath holds up her sign saying "Save SELH" during a rally on Highway 190 outside Southeast Louisiana Hospital on Oct. 3.Ted Jackson, nola.com / The Times-Picayune)
Local legislators, many of whom are close allies of Gov. Bobby Jindal, began a push for privatization as a way of saving the services and jobs provided by the hospital. Hospital supporters, meanwhile, said they favored keeping the hospital in public hands and viewed privatization as a less desirable alternative. They feared private companies might be more concerned with profits than with the needs of the patients.
Despite intense pressure to keep SELH open as a state-run facility, DHH continued its drive to extract itself from the operation of the hospital. The state health department, which is trying to counter an $859 million cut to its Medicare funding, says it wants to ensure a sustainable behavioral care system for the future by de-emphasizing the role of large public institutions and instead building partnerships with community providers.
Given the circumstance, several political leaders in the parish embraced privatization as the best way to save the 60-year-old mental health institution that helped define Mandeville before it became a popular north shore residential community.
"Parish President Pat Brister and I have been aggressively pursuing a solution to the problem created by the state's sudden budget cuts," said state Sen. Jack Donahue, R-Mandeville. "This proposed agreement meets the needs of all who are involved. Taxpayers shoulder less burden, while services continue for those who need the benefits of this facility. This agreement also protects jobs in St. Tammany Parish."