ABC News / Associated Press, May 5, 2014
Federal officials on Friday rejected Louisiana Gov. Bobby Jindal's financing plans for the privatization of six state-owned hospitals that care for the poor and uninsured, dealing a potentially significant blow to the state's health care operations. The decision threatens deals that already have been used to turn over hospital management and could create massive upheaval in the state's operating budget. The Jindal administration downplayed the significance of the decision, however, saying it will appeal. The U.S. Centers for Medicare and Medicaid Services, or CMS, notified the state health department that it refused to sign off on the plans. The agency said the agreements don't meet federal guidelines governing how Medicaid dollars can be spent.