State Treasurer John Kennedy offers a compromise to LSU on WWL Radio, LSU refuses to appear

Moments ago on Garland Robinette's show on WWL Radio, State Treasurer John Kennedy offered a compromise proposal to LSU administrators two days after his subcommittee on the Commission on Streamlining Government unanimously endorsed the FHL/RMJM alternative plan to gut and rebuild Charity Hospital over the stalled LSU/VA proposal.

Treasurer Kennedy's compromise offer involved using $100 million of the estimated $280 million saved by selecting the FHL/RMJM plan instead of the LSU/VA medical complex proposal to help LSU recruit top flight research and teaching talent to New Orleans.

Kennedy reiterated that it is not his intention to "fight" LSU but that he has growing concerns over whether the $1.2 billion LSU/VA medical center proposal will be able to cash flow if it is forced to take out a significant number of loans to complete construction. The Treasurer's concerns stem from the likelihood that the healthcare reform bill being debated in Congress will result in the elimination of Disproportionate Share Hospital (DSH) reimbursements, a revenue stream upon which the LSU business plan relies. (See yesterday's post)

Garland Robinette told listeners that LSU representatives declined invitations to appear on the show to have a discussion with Treasurer Kennedy about his proposal and his concerns regarding LSU's ability to finance their proposed medical facility.