8/19/2019 Letter Re UMC Lease Payments 3.8.16

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March 8, 2016

Jay Dardenne

Commissioner of Administration1201 N. 3rd Street #7-210Baton Rouge, LA 70802

Dear Commissioner Dardenne:

As the Legislature’s 2016 1st Extraordinary Session comes to a close tomorrow at 6:00 p.m., Iwant to thank the Administration and the Legislature for all of their relentless efforts andingenuity in working toward a budget solution. However, it is our understanding that at thismoment the Public Private Partners, specifically University Medical Center New Orleans(UMC), will potentially take a significant budget reduction.

Given the current budget reconcil iati on solution that we understand, cash f lows to UMC wil l

not be suf f icient to al low our l ease payments to be made in June 2016 (which we understand

was budgeted in State F iscal Year 2016). I n accordance with our agreement, these lease

payments would be made monthl y over State Fi scal Year 2017, assuming that our partnership

stays intact. 

I and our Board of Trustees have stated very clearly…we are a budget solution, not a budgetary problem and we remain committed to being a part of the solution. We have invested over $400million in UMC and we were planning to continue our lease payments of $91 million in June2016.

We hope that the Legislature and Administration can find alternative ways to fill the budgetdeficit before the end of this Session. Thank you for your leadership and your attention to thismatter.

Sincerely,

Gregory C. FeirnCEO, LCMC HealthInterim CEO, University Medical Center New Orleans

CC: All Members of the Louisiana Legislature