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Cash-strapped Louisiana hospitals to work together to cut costs

New Orleans Times Picayune, July 9, 2009
The Jefferson Parish Council has created a 10-member board to oversee joint cost-saving efforts between the Louisisana parish's two publicly owned hospitals, which have lost a combined $170 million since 2005. The council unanimously approved a parish-wide hospital service district to increase collaboration between West Jefferson Medical Center in Marrero and East Jefferson General Hospital in Metairie. Parish officials said the board will use the hospitals' combined bargaining power to negotiate higher reimbursement rates from insurance companies and lower prices on everything from pharmaceuticals to cleaning supplies.