Lafayette General Threatens Split From UHC Agreement

Lafayette General Health has served a formal letter to Gov. John Bel Edwards and LSU threatening to terminate the cooperative endeavor agreement among LGH, UHC, and the state of Louisiana due to lack of funding for UHC.

The termination will become final on July 1 if full funding is not provided from the state to operate UHC.

“Such a decision is not taken lightly given Lafayette General Health’s commitment to care for its community, including the indigent and uninsured population; however, the continued reduction in funding for UHC makes its operation untenable and creates systemic risk for our not-for-profit, community-owned health system,” said LGH President David L. Callecod.

If UHC is not funded by June 30, as part of the termination and withdrawal process, either LSU must take over UHC’s operations or LGH will be forced to implement the following:

•  Termination of over 800 hardworking, local employees;
• Termination of Graduate Medical Education (GME) training programs, disrupting the training process of hundreds of medical students and residents;
• Cessation of all services at University Hospital and Clinics.
• Under the terms of the CEA and the lease agreement for the UHC facility, the lease will automatically terminate upon the termination of the CEA, as will other agreements related to the CEA.

“It is unfortunate that the budget impasse the State finds itself in could lead to devastating, unrecoverable instability for thousands of employees, physicians, learners and patients who rely on the critical healthcare services UHC provides,” Callecod continued.