Gulf States To Receive $175M In Grants To Help Restore Health Care Services

Louisiana, Mississippi and Alabama will be eligible to receive $175 million in grants to restore health care services that were impaired by Hurricane Katrina in August 2005, HHS Secretary Mike Leavitt announced Thursday, AP/Yahoo! News reports. About $160 million of the grant money will go to hospitals and nursing facilities, which face shortages of doctors, nurses and other health care workers who left the area after the storm. Of that amount, Louisiana will receive $71.6 million, Mississippi will receive $60.5 million and Alabama will receive $27.8 million. Another $15 million in grant money will be given to Louisiana to recruit doctors and other providers for the New Orleans area. The grants are among the last of a $2 billion appropriation approved last year to help the three Gulf Coast states counter the health care strains caused by the 2005 storm. Some lawmakers who met Leavitt on Thursday said more money is needed. Sen. Mary Landrieu (D-La.) said, “This is a help for us. We’re grateful. But we have a true mental health crisis in our state and severe health care issues that have to be addressed.” Landrieu also suggested that Louisiana should have received a larger share of the money because it sustained the most damage during the storm. Rep. Bobby Jindal (R-La.) said the money will help in the short term but added that in the long term, “We need a plan to make sure that people feel comfortable bringing their families back, that there will be somewhere they can go to get their health care and employees will be comfortable bringing employees back.” Leavitt said he will return to New Orleans in two weeks to discuss those plans. In the meantime, he said the grant money “will be useful to the hospitals in being able to keep them financially solvent” (Evans, AP/Yahoo! News, 1/19).

“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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