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Program A: Administration

Program Authorization: R.S. 40:2002; 40:2014; 40:2331; 40:1232; and Act 3 of 1997

PROGRAM DESCRIPTION

The mission of the Administrative program is to provide assistance and administrative support services to each of the State operated acute care Health Care Services Division medical centers.

The goal of the Administration program is to serve as the central staff arm of the LSU Medical Center, Health Care Services Division, assisting the Governing Board and each Medical Center in achieving their respective goals and objectives by providing leadership, information, technical assistance, and administrative support services consistent with the standards of community hospitals in the United States. This program includes the Administrative Executive staff and clerical support assigned to these positions. Funding for Medical Education and Research (Anatomical Services) Program is included in the Anatomical Services activity in the Executive Administrative Program.

OBJECTIVES AND PERFORMANCE INDICATORS

1. The Administration Program provides leadership to the hospitals under the Louisiana State University Medical Center Health Care Services Division. The success of this program is reflected in the success of the other programs in the Division. Performance information consistent with this program's strategic plan and with the statewide model for administration/support service programs will be reported next year's

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with interagency transfers and self-generated revenue. Funding from statutory dedications was provided in Fiscal Year 1997. The interagency transfers represent reimbursement from the Medicaid program for services provided to Medicaid eligible and "free care" patients. The self-generated revenue represents anatomical fees collected from medical students to help defray the costs of cadavers supplied by the Anatomical Services activity. The interagency transfer means of financing is collected at the individual hospital level, based on costs allocated from the Administration program, and the funds are then "pooled" back to fund the Administration program. The Statutory Dedications are derived from Capital Improvements Auxiliary Fund and the Bond Indebtedness Auxiliary Fund. (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund.)

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$20,130,768

122

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$2,337,480

0

 

Carryforward $2,332,790 of federal funds for the final payment on the Delotitte and Touche contract pursuant to a request by the Legislative Auditor and $4,690 of federal funds for computer equipment not delivered by June 30, 1997

$0

$0

12

 

Transfer 12 vacant positions from the Medical Center of Louisiana at New Orleans, with no associated funding, to strengthen the internal audit function of the agency

 

 

 

 

 

$0

$22,468,248

134

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

($2,337,480)

0

 

Non-Recurring Carryforwards including $2,332,790 of federal funds for the final payment on the Delotitte and Touche Contract persuant to a request by the Legislative Auditor, and $4,690 of federal funds for computer equipment not delivered by June 30, 1997.

$0

$40,000

0

 

Equipment /Major Repairs Adjustment(s)

$0

$82,816

0

 

Annualization of 1997-'98 Merit Pay Adjustment(s)

$0

$84,025

0

 

1998 -'99 Merit Pay Adjustment(s)

$0

$0

(3)

 

Personnel Reduction(s)

$0

$867,440

0

 

Attrition Adjustment(s)

$0

($30,881)

0

 

Retirement Rate Adjustment(s)

$0

($21,446)

0

 

Adjustment(s) for Civil Service, Training and Other Statewide Interagency Transfer Activities

$0

($805,674)

0

 

Reductions in various Expenditure Categories; Including Reductions to fully fund salaries

$0

$566

0

 

U P S Fees

$0

($7,805)

0

 

Legislative Auditor Fees

$0

$0

9,862

 

Combine all positions authorizations recommended for the HCSD hospitals in this program to provide additional management flexibility in determining individual hospital manpower needs. Of the total recommended positions, not more than 131 are to be utilized in this program.

$0

$501,294

0

 

Fund the cost of 12 internal audit positions transferred from the Medical Center of Louisiana at New Orleans by BA-7

$0

$517,354

0

 

Fund the initial implementation costs of a financial executive information system

 

 

 

 

 

$0

$21,358,457

9,993

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

($1,109,791)

9,859

 

DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 95.1% of the existing operating budget. It represents 80.1% of the total request ($26,66,052) for this program. Most of the reduction shown above is the result of non-recurring $2.3 million in federal funds carried forward from FY 1997-1998 for the final payment on the Deloitte and Touche contract, pursuant to a request from the legislative auditor. Additional interagency transfer funding in the amount of $501,294 was provided to annualize the costs of 12 internal audit positions transferred from the Medical Center of Louisiana at New Orleans by BA-7 during FY 1997-98 with no associated means of financing, and by $517,354 to begin initial implementation of a financial executive information system. Full funding has been provided for all 131 recommended positions. Professional services have been reduced, three (3) vacant positions have been eliminated, and additional interagency transfer means of financing has been added to provide the necessary funding adjustments needed in the salaries and related benefits categories. The recommended funding for salaries and related benefits also includes the annualized cost for 12 positions, moved from the Medical Center of Louisiana at New Orleans by BA-7 during FY 1997-98 with no associated means of financing, to strengthen the internal audit function of the agency. All positions authorizations recommended for the HCSD hospitals have been combined in this program to provide additional management flexibility in determining individual hospital manpower needs. Of the total recommended positions, not more than 131 are to be utilized in this program.

The Total Recommended amount above includes $14,086,577 of Supplementary Recommendations of which $0 is State General Fund for 70% of the budget for this program. Funding of this Supplementary Recommendation is dependent upon renewal of the current sales tax rate of 3% on the sales tax suspension of exemptions base.

PROFESSIONAL SERVICES

$7,794,164

 

Shared Medical Systems for data processing services

$2,672,264

 

Health Management Systems for retroactive revenue recovery services that are paid on the basis of a percentage of the amounts collected

$1,000,000

 

Computer Methods and Southern Credit Recovery for the collection of delinquent patient accounts that are paid on the basis of a percentage of the amounts collected

$31,500

 

American Appraisal for real property appraisal and consulting services

$50,000

 

Allen Gooch for legal services

$49,398

 

Soloman Group - HMO Planning

$76,512

 

Tharp-Sontheimer Funeral Home for anatomical services

$1,488

 

Tulane University School of Medicine for anatomical services

$50,000

 

Jones, Walker for legal services.

$100,000

 

Prospective payment for Medicare payment review

 

 

 

$11,825,326

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$22,662

 

Legislative Auditor expenses

 

 

 

$22,662

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$118,000

 

Payments to the LSU School of Medicine for anatomical services

$100,000

 

Payments to the Department of Corrections, Public Safety Services, for data processing services

$1,800

 

Payments to the Division of Administration and the Department of Social Services for printing, postage and supplies

$12,618

Payments to the Department of Civil Service

$6,030

 

Payments to the Comprehensive Public Training Program

$3,277

 

Payments for Uniform Payroll System expenses

 

 

 

$241,725

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$287,000

 

Funding for replacement of inoperable and obsolete equipment

 

 

 

$287,000

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS


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