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GAO-06-576R 1 (2006-03-28)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


         March 28, 2006

         Congressional Committees

         Subject: Hurricane Katrina: Status of the Health Care System in New Orleans and
         Difficult Decisions Related to Efforts to Rebuild It Approximately 6 Months After
         Hurricane Katrina

         Among the challenges facing New Orleans in the aftermath of Hurricane Katrina is
         the significant destruction and disruption of health care services. Hurricane Katrina,
         which made landfall near the Louisiana-Mississippi border on the morning of August
         29, 2005, and the subsequent flooding caused by the failure of the New Orleans levee
         system resulted in one of the largest natural disasters to hit the U.S. Among other
         things, the hurricane resulted in the sudden closure of hospitals and loss of other
         health care providers, including one of the largest hospitals in the area, Medical
         Center of Louisiana at New Orleans (MCLNO), which suffered extensive damage and
         remains closed. MCLNO, consisting of Charity and University Hospitals, is part of the
         statewide Louisiana State University (LSU) system and served as the primary safety
         net hospital for many local residents. About half of its patients were uninsured, and
         about one-third were covered by Medicaid. Furthermore, MCLNO also served as a
         major teaching hospital and the only Level I trauma center in the area. The
         availability of health care services is one of the factors that can affect whether and
         how quickly residents return to the area.

         We have undertaken work to provide a snapshot of the status of the health system in
         New Orleans and efforts to rebuild it approximately 6 months after Hurricane Katrina
         devastated the area. We are performing this work under the Comptroller General's
         authority to conduct evaluations on his own initiative.' To conduct our review, we
         obtained information on (1) estimates of the availability of health care services; (2)
         efforts by state and local officials to plan for the rebuilding of the health care system;
         and (3) assessments of the damage to the MCLNO facilities, cost estimates for repair
         or replacement, and the costs that are eligible for federal funding. The Ranking
         Minority Members of the House Committee on Energy and Commerce and its
         subcommittees on Health and on Oversight and Investigations requested a briefing on
         the preliminary observations of our review. We briefed the committee and other
         committees of jurisdiction on February 15 and 16, 2006. In addition, Comptroller
         General David Walker's testimony before the Senate Homeland Security and
         Governmental Affairs Committee on March 8, 2006, discussed the significant damage
         to the health care infrastructure in New Orleans. This report documents the
         information presented in those briefings and testimony.


GAO-06-576R Status of the Health Care System in New Orleans


'See 31 U.S.C. § 717(b)(1).

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