Updated: Thursday, 21 Mar 2013, 12:41 PM EDT
Published : Thursday, 21 Mar 2013, 12:41 PM EDT
BATON ROUGE, La. (AP) — Plans to privatize most of LSU's public hospitals means borrowing for repairs and construction of the health facilities will be taxable. That borrowing will cost the state more.
The Bond Commission learned that bonds issued for LSU hospitals and clinics slated to be managed by private hospital operators don't meet the requirements for tax-exempt status by the IRS.
Nearly $56 million in taxable borrowing was approved Thursday for LSU health care facility construction projects, done through bond sales to investors that are paid off over time.
Whit Kling, director of the Bond Commission, says the repayment of those bonds will cost the state $13 million more than if the bonds were tax-exempt.
Gov. Bobby Jindal has pushed to privatize the LSU hospitals to save the state money in operating funds.