Fight for FEMA aid resumes at Katrina ravaged hospital

Emergency Management Alert, December 16, 2008

The Federal Emergency Management Agency (FEMA) has agreed to pay $150 million for hurricane-related damages to Charity Hospital in New Orleans, after years of back-and-forth haggling between the federal organization and state officials.

But it looks as though the arguing will continue.

The funding falls far short of the $492 million that the state has claimed in damages from Hurricane Katrina and the flooding that followed , but more than the $23 million FEMA originally promised, according to The Times Picayune. State officials have said they will appeal the ruling, but will wait until January 20, when President-Elect Barack Obama brings in his new administration.

The state has commissioned three studies that show hospital damages were more than 50%, which would require full reimbursement for replacement costs. However, FEMA has said that many of the damages were a result of poor maintenance years before Katrina.

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