University Health Pays and Escrows Funds Due LSU

University Health Pays and Escrows Funds Due LSU

University Health System today paid or escrowed funds for all outstanding payments due to LSU, as outlined in its formal response to LSU's demand letter of Aug. 19.
University Health System today paid or escrowed funds for all outstanding payments due to LSU, as outlined in its formal response to LSU's demand letter of Aug. 19.

The cash payment included $6.93 million for net sums due under agreements that have been executed by both parties. Additionally, the hospital placed $10.58 million in escrow to cover payments LSU claims it is owed under unsigned agreements, as payments without executed documents could constitute a violation of certain state and federal healthcare laws.

University Health expressed regret that the LSU public demand for $25 million failed to mention that LSU was holding funds in excess of $10 million LSU owes to University Health. University Health's letter reiterated its position that third parties be allowed to settle any remaining contractual issues, a position it has maintained since June 2013.

Additionally, University Health again expressed its frustration that LSU, without legal authority, has refused to authorize the release of $17 million in promised funding for University Health, pending completion of remaining contracts.

University Health regrets the needless expenditure of millions of dollars in legal fees that could have been better used to fulfill the mission of healthcare delivery in north Louisiana.

University Health remains committed to north Louisiana's healthcare and medical education and wants to work in partnership with LSU to achieve all of the state's privatization goals including better access to care and continuous quality improvement.

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