The rejection of Jindal’s hospital privatization plan leaves a $300 million hole in the state’s 2015 budget and and immediate $70 million shortfall for higher education funding.
Apparently, the CMS didn’t buy Jindal’s attempt to use federal dollars to attract more federal matching dollars to finance his privatization plan. The governor, however, plowed ahead with his plan, refusing to wait for federal approval.
Predictably, Jindal said, “CMS has no legal basis for this decision,” and added that he plans to appeal. If unsuccessful, he could take the issue to court, where he has not had much success with other plans he has produced as governor.