Cassidy, Louisiana Delegation Introduce Bill To Bolster Health Care Training Program

Press Release

Today, Congressman Bill Cassidy (R-Baton Rouge) and the full Louisiana Congressional Delegation introduced legislation to bolster health care training in Louisiana by fixing an inequitable Medicare reimbursement formula affecting Our Lady of the Lake Medical Center in Baton Rouge (OLOL) and West Jefferson Medical Center (WJMC) in Marrero.

"Solving Louisiana's physician shortage and improving access to affordable health care requires well-funded training programs for health care professionals," said Cassidy. "Hurricane Katrina fundamentally changed Louisiana, requiring new approaches at the state and federal level to address Louisiana's health care needs. In Katrina's aftermath, Our Lady of the Lake stepped forward to support graduate medical education in Louisiana with a temporary solution that has become a permanent program. This legislation is part of the new approach to health care. It strengthens graduate medical education in Baton Rouge and preserves Louisiana's ability to train health care professionals."

"One of the great challenges facing Congress is finding solutions to provide affordable, quality health care to all Americans," Sen. Landrieu said. "A key component is ensuring we have robust medical education programs. Louisiana is blessed to have Our Lady of the Lake Hospital and West Jefferson Medical Center serving our citizens. Their efforts to educate health care professionals following Hurricanes Katrina and Rita set an example for the nation. Now it is time for Congress to correct this reimbursement inequity to support Our Lady of the Lake Hospital and West Jefferson Medical Center, and their fine work in training the next generation of doctors and nurses."

"Our Lady of the Lake Hospital plays a pivotal role in providing care to Baton Rouge and the region, and they've made great efforts to help train future health care professionals since Hurricane Katrina," said Sen. David Vitter. "It's important that we recognize their commitment to delivering care for Louisianans and correct this reimbursement inequity so they can continue training and educating Louisiana's future physicians."

"After Katrina and Rita closed Charity, Our Lady of the Lake Hospital stepped up and was a leader in the recovery of south Louisiana's health care system," said Rep. Charlie Melancon. "Fixing their reimbursement rates will ensure that communities throughout Louisiana continue to have a steady source of new, highly-trained health care professionals serving them."

"As a physician, I know how critical it is for our state to have top caliber doctors to provide care for our citizens," said Rep. John Fleming. "Hurricane Katrina presented Louisiana with challenges regarding the future of health care and Our Lady of Lake stepped up to ensure there would be no gap. I fully support this legislation so that Our Lady of the Lake will be able to continue to provide high quality graduate medical education."

"Correcting the Medicare reimbursement disparity will preserve Louisiana's ability to provide quality medical education in our state," said Rep. Rodney Alexander. "In the aftermath of Hurricane Katrina, Our Lady of the Lake proved invaluable by providing the necessary training to displaced residents of Charity Hospital. It is important that we recognize and support their efforts to strengthen our state's ability to provide this service and education. Not only will this legislation help Our Lady of Lake to retain and educate the future health care professionals of our state, but it will encourage other hospitals to step up in times of unforeseen disasters."

"West Jefferson Medical Center and Our Lady of the Lake Hospital provide invaluable health services to the people of South Louisiana, and they are critical components to ensuring a sustainable healthcare workforce," Congressman Steve Scalise said. "Hurricanes Katrina and Rita presented many challenges, but these hospitals made sure our residents maintained high-quality training options right here in Louisiana. Since the overwhelming majority of physicians practice in the state where they train as residents, their perseverance helps ensure our physicians-in-training stay here in Louisiana."

"When we were hit by Hurricane Katrina, institutions and individuals across the state of Louisiana stepped up to help their extended family from Orleans and Jefferson Parishes," said Rep. Anh "Joseph" Cao. "Our Lady of the Lake was one of them. Since the storms, [OLL] has done great work in training the professionals who will come to the aid of Louisianans when, God forbid, the next disaster hits. Their role is critical."

When Hurricane Katrina forced the closure of Charity Hospital's graduate medical education program (GME) in New Orleans, OLOL stepped in to fill the void, establishing a new GME program to train Louisiana doctors displaced by the storm. Before Katrina, over 70% of Louisiana doctors were trained in the New Orleans programs.

While fulfilling a clear public need for well-trained health care professionals to serve Louisiana patients, costs amounting to roughly $190,000 per medical student have strained OLOL's budget due to inadequate reimbursement from Medicare.

Legislation introduced today by the Louisiana Delegation will ensure Medicare compensates OLOL fairly for expenses associated with its GME program by fixing an arbitrary guideline in Medicare's reimbursement formula that has resulted in insufficient repayment to the Hospital.

In the 1960s, a Medicare reimbursement formula was established to compensate hospitals for GME program expenses. More recent modifications to that formula significantly reduced Medicare reimbursements to GME programs begun after 1985, while programs founded before the 1985 deadline were grandfathered into the more generous formula.

The Delegation's bill will remedy this disparity by applying the pre-1985 formula to hospitals like OLOL that initiate GME programs to train doctors in federally declared disaster areas.

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