Court postpones hearing for control of University Health

A court hearing about who will control University Health hospitals in Shreveport and Monroe has been moved to November.

It's the first hearing in a lawsuit filed in 19th Judicial District Court in Baton Rouge by LSU asking that Biomedical Research Foundation of Northwest Louisiana be removed as the former charity hospitals' operator.

The hearing had been set for Tuesday and Wednesday, but was moved to Nov. 4-5.

LSU formally served a breach of contract notice to BRF last month, demanding the foundation withdraw as the operator of University Health. LSU formed a new non-profit Sept. 23 — Academic Health of North Louisiana Hospital Management Co. Inc. — to take over.

When BRF declined to withdraw, denying it breached the public purpose of the contract, LSU filed its lawsuit asking the court to remove the foundation.

BRF has filed a motion that LSU's lawsuit be dismissed, which is expected to be ruled upon in the Nov. 4-5 hearing.

BRF secured the contract to operate northern Louisiana’s two safety-net hospitals in 2013 as part of Gov. Bobby Jindal’s plan to privatize the state’s charity hospital system.

LSU claims BRF has failed as the operator, damaged the reputation of LSU's contiguous medical school in Shreveport and doesn't have deep enough pockets to run the hospitals.

BRF points to what it says have been almost across-the-board improvements since taking over University Health in Shreveport and University Health Conway in Monroe.

Biomedical Research Foundation also has an ongoing antitrust lawsuit against Willis-Knighton Health System.

Though federal and state lawsuits are separate, they are related. BRF alleges Willis-Knighton is working with LSU to undermine the foundation’s operation of the former charity hospitals by siphoning commercially insured patients from University Health to Willis-Knighton.

In September in federal court a judge declined to dismiss BRF’s lawsuit against Willis-Knighton, but also declined BRF’s request for an injunction to stop Willis-Knighton from opening clinics competing with University Health. If BRF wins the lawsuit, which could go on for years, the foundation could sue Willis-Knighton to recoup any alleged losses.

Vantage Health Plan, an insurance company headquartered in Monroe, is enjoined with BRF in the lawsuit claiming Willis-Knighton is operating an illegal monopoly.

Follow Greg Hilburn on Twitter @GregHilburn1