[StBernard] Deadline for St. Bernard hospital plans delayed

[Westley Annis]

Deadline for St. Bernard hospital plans delayed
by Paul Rioux, The Times-Picayune 
Thursday September 25, 2008, 9:43 PM
Thursday's deadline for health care firms to submit proposals to manage a
yet-to-be-built St. Bernard Parish hospital was postponed 15 days to buy
time to resolve conflict-of-interest issues concerning a public board
overseeing the project.

Board members said they hope an 11th-hour agreement to end the ethical
impasse will encourage one of the top contenders to reconsider dropping out
of the running.

Political wrangling between the hospital board and parish government played
a role in the Franciscan Mission of Our Lady Health System's decision to not
submit a proposal, said Catherine Harrell, a spokeswoman for the
Franciscans.

St. Bernard Parish President Craig Taffaro and a majority on the Parish
Council have been at odds with the five-member hospital board over the
board's composition as well as funding for the 40-bed public hospital, which
is expected to cost up to $60 million.

The Franciscans and the Ochsner Health System have long been considered the
top contenders for the management contract. A couple of out-of-state firms
have recently expressed interest as well.

Based in Baton Rouge, the Franciscans set up a clinic in Chalmette to
temporarily replace St. Bernard's lone hospital, which was destroyed by
Hurricane Katrina.

Two doctors serving on the five-member hospital board -- Bryan Bertucci and
Paul Verrette -- are employed by the Franciscans at the clinic, raising a
potential conflict of interest over awarding the contract.

The doctors have said they would recuse themselves from contract voting if
the Franciscans submit a proposal. But Taffaro and several Parish Council
members say strict ethics regulations tied to project grants require the
doctors to resign.

After voting Wednesday night to extend the deadline for receiving management
proposals, the hospital board announced an agreement on the ethics issue
reached during a closed meeting with council members Fred Everhardt, Michael
Ginart and Kenny Henderson.

Board chairman Daniel Dysart said the doctors have agreed to resign if the
Franciscans submit a management proposal. In exchange, the parish would
release $25 million in Katrina-related redevelopment grants to the board, he
said.

If the Franciscans do not submit a proposal, the doctors would stay on the
board, and the parish would still release the funds, Dysart said.

Harrell said Thursday afternoon that the Franciscans had not been officially
notified of the agreement. "As of right now, our position hasn't changed, "
she said.

Meanwhile, Parish Councilman Ray Lauga sponsored a successful resolution at
a special council meeting Wednesday calling on the hospital board to have an
outside entity assess the management proposals.

"That's just part of the necessary due diligence to make sure the $25
million goes in the right direction, " said Lauga, who has also introduced
an ordinance to appoint a new hospital board if the doctors don't resign.

Noting that Lauga, an architect, worked for Ochsner for five years, some
supporters of the Franciscans have questioned whether he, too, has a
conflict of interest.

"I left Ochsner on bad terms after a philosophical disagreement, " Lauga
said. "I have nothing to gain regardless of who gets the contract."

Bertucci said he hopes the Franciscans submit a proposal, even if it prompts
his resignation.

He noted that the Franciscans worked to secure full reimbursement from the
state for treating uninsured patients, widely regarded as critical to the
hospital's financial viability. He also said they were instrumental in
obtaining $17 million in state funding for construction costs.

"They've done so much to help this community that it would be a shame if
they are not part of the process going forward, " Bertucci said. "After all,
it's the fruits of their labor."