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Jefferson Parish hospitals could be leased without referendum under bill headed to governor's desk

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Jefferson Parish would be allowed to lease out its public hospitals without putting that decision to a vote of the people under a bill headed to Gov. Bobby Jindal's desk. The Louisiana Senate overwhelmingly approved the measure Thursday. Parish officials have been pushing the measure, House Bill 383 by Metairie Republican Rep. Joseph Lopinto. They argue it would be...

Jefferson Parish would be allowed to lease out its public hospitals without putting that decision to a vote of the people under a bill headed to Gov. Bobby Jindal's desk. The Louisiana Senate overwhelmingly approved the measure Thursday.

Parish officials have been pushing the measure, House Bill 383 by Metairie Republican Rep. Joseph Lopinto. They argue it would be impossible to negotiate a 30-year lease for East Jefferson General Hospital in Metairie and West Jefferson Medical Center in Marrero if the plan had to go to a referendum.

Senators voted 34-1 for the bill, with only Senate President John Alario, R-Westwego, opposing the measure. The House approved the bill without opposition earlier this month. The measure now heads to Jindal's desk for his signature or veto. 

Sen. Danny Martiny, R-Kenner, told senators the state measure was key to keep the hospitals running. "It's necessary for the continued survival of these two hospitals in this very hectic market," Martiny said.

State law now requires a public referendum on any proposal to sell or lease the Jefferson hospitals. The changes made by the Legislature would not remove the requirement of a public vote on selling.

Jefferson Parish also has a local ordinance requiring a referendum, so backers of the lease plan must also amend that law to move forward.

Parish officials have said they're negotiating with three outside hospital operators that could lease and run the hospitals. Those entities have not been named but officials said they are all medical firms in Louisiana.

During public hearings and interviews about the possible lease, parish officials have suggested a public vote would sink the plan. Earlier this month Sheriff Newell Normand, who also serves as chairman of the East Jefferson General board, said making public disclosures about the hospital during a referendum campaign would put the facility at a competitive disadvantage in a rapidly changing industry.

"In order to gather support for the referendum, you begin to reveal your blemishes and your suitors' blemishes," Normand said at a meeting of the East Jefferson Civic League. "It makes it a very uneasy relationship from the beginning."

Alario said he cast the sole dissenting vote on the measure because he opposed taking the final say on the deal away from residents in the parish. While he said he was aware that a bill dealing with the hospitals was moving through the process, he said he hadn't read the actual bill until Thursday, when he was presiding over its presentation to the Senate.

"I think it's just the public's right to make that decision," Alario said.


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