LSU System Information

Overview of the LSU System

Health Care Delivery and Reform

The LSU Health System consists of the Health Sciences Center in Shreveport, which also operates three hospitals and clinics, the Health Sciences Center in New Orleans and the Health Care Services Division, which operates seven public hospitals and clinics.

The Health Sciences Centers in New Orleans and Shreveport supply the majority of the state’s medical workforce, training over 1,000 medical residents and 2,000 students annually in nine medical, dental, nursing, public health, graduate and allied health schools.

LSU’s Health Sciences Centers, hospitals and clinics are economic engines for the state with annual operating budgets over $2 billion and another $2.6 billion generated in additional economic development activity.

LSU Health System is one of the largest employers in the state with over 14,000 faculty, doctors, nurses and staff.

The two health sciences centers generate approximately $70 million annually in academic research funding

LSU is a leader in modern health care delivery with an integrated, coordinated system of care among 10 public hospitals and over 500 primary and specialty clinics that link resident training with cost-effective patient care.

The LSU Health System provides primary and preventive care with 1.5 million outpatient visits per year compared to 360,000 ER visits and a chronic disease management program with 20,000 patients LSU hospitals consistently perform at or well above state and national averages on quality benchmark measures.  Patient satisfaction rankings at LSU hospitals, in fact, are above national norms as reflected in independent survey data.

On a fiscal note, LSU hospitals have lower inflationary growth than the general Medicaid program and comparable costs to other academic medical centers and public hospitals.

The impact of Hurricane Katrina highlighted the need for better coordination and disaster management, leading to the creation of the LSU System Office of Health Affairs and Medical Education, which now consolidates reporting between the hospitals and LSU’s two medical schools.

As a result, the Health Affairs office is actively working on plans to eliminate inefficiencies, centralize administrative services and identify services that can be shared.  Governance is being streamlined and there is clearer communication among all LSU health care units.
Equally significant is that centralization of key services among LSU hospitals, such as IT, Facilities and Supply Chain, Human Resources and Billing, is leading to an increased leveraging of resources at reduced costs.  Efforts are underway to stringently eliminate duplicate services and trim the number of employees to more effectively meet performance goals and quality care targets.

What do LSU hospitals do to control their costs?  LSU has been challenged with limited budget resources and limited net revenue growth for years.  As a result, LSU Health has developed many cost saving innovations and procedures.  The list below reflects the most significant cost saving measures: