Health Law and Regulation

Hospitals in Louisiana and Mississippi still recovering from Hurricane Katrina will receive $19.1 million in additional assistance from the U.S. Department of Health and Human Services (HHS). This grant is targeted specifically to Louisiana and Mississippi to support their hospitals and inpatient psychiatric facilities (IPFs) that are facing serious and ongoing financial pressure to compete for workers in highly competitive post-storm labor markets.

Three years after Hurricanes Katrina and Rita devastated the Gulf coast, many state healthcare delivery systems are still attempting to rebuild. To date, HHS has provided the region with more than $2.5 billion to assist in funding for social services, healthcare, and efforts to rebuild the healthcare system in the states hardest hit by the storms.

“HHS continues to work with those in need to resolve the healthcare problems created by Hurricane Katrina,” Secretary Mike Leavitt said. “This grant is another step we are taking to make sure the citizens of these states have continued access to medical services.”

The additional grant funds will help support provider operations until the Medicare prospective payment system can adjust for changes in local wage scales. Funding for hospitals and IPFs will be allocated to these two states with just over $10 million available to Louisiana and nearly $9 million to Mississippi. States will have discretion to determine which hospitals, IPFs and regions are still experiencing the most post-Katrina difficulties and will receive grant funds.

Source: The U.S. Department of Health and Human Services, May 6, 2008

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