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LSU Health Sciences Center
Health Care Services Division

Budget Status

• The overall FY03 funding level for the state "charity" hospital system will remain relatively constant from FY02.
   
• Most recent projections suggest HCSD will generate revenues in the range of $781.0 million to $794.5 million in FY03, producing a worst case scenario of a two percent reduction in total revenues generated as compared to the prior fiscal year.
   
• As per R.S. 17:1519.4(E)(1), HCSD's total operating budget shall be set by the LSU Board of Supervisors and reported to the Joint Legislative Committee on the Budget. HCSD is currently working to finalize its FY03 revenues and expenditure projections for the board's approval.

Paying for Prisoner Health Care Services

• $17.3 million State General Fund has been appropriated to fund medical services for state inmates as the federal government will no longer provide federal financial participation through the Disproportionate Share Payments program for inmate health care in FY03.
   
• The State General Fund partially offsets a $21 million reduction in payments from the Medicaid program per this change in federal policy.
   
• This leaves roughly $18 million in expenditures not funded for the remaining portion of the costs of caring for state inmates and the total costs of providing medical care for local inmates.

Unfunded Costs

• No adjustments were made to compensate in the budget for employee merit increases or the increased costs of group insurance premiums.