New Orleans–Governor Bobby Jindal said Wednesday that the people of the New Orleans area deserve a brand new teaching hospital. Jindal’s comments came within hours of FEMA losing its battle against the state in arbitration handled by the U-S Civillian Board of Contract Appeals.

The board ruled that FEMA must award the state $474 million for damage to Charity Hospital during Hurricane Katrina.

FEMA wanted to give the state $126 million to $150 million. Since Katrina there has been debate in the community over whether Charity’s interior should be rebuilt, or whether a new medical facility should be built.

The decision seals the deal as far as Governor Jindal is concerned. He said a new hospital is critical for this area’s on-going recovery.

“Let’s not be just rebuilding what was here before the storm, shame on us if we don’t aspire to be better, we should be able to compete with the Houstons and Birminghams,” Jindal said during a news conference.

LSU and Tulane officials are applauding the developments. “This will allow us a facility that will be very attractive to young physicians as they graduate, be attractive to have them come and train here and if they train here there’s a 70-percent chance they’ll stay and practice here, said Dr. Larry Hollier, of the LSU Health Sciences Center.

Tulane President Scott Cowan said, “I am very pleased that the arbitration panel has resolved the open issue regarding the replacement value of Charity Hospital. The decision by the Appeals Board will allow all the partners in the new University Medical Center to move forward in planning for the future of health care in New Orleans and the region.”

“These hospitals will provide thousands of good jobs during the construction phase and, when complete, will completely revitalize our economy. We are going beyond rebuilding. We are reinventing ourselves for the future and becoming a city that is great for families, attracts qualified professionals and provides opportunities for our young people,” New Orleans Mayor Ray Nagin said.

The business community said the new hospital which will share land with a new V-A Medical facility will give patients some of the best care around.

“These two hospital projects will be the largest hospital construction project at one time in the entire world,” said Jim McNamara, President of the Greater New Orleans Bio-Science Economic Development District.

Jindal said he will appoint a Charity Hospital Board in a couple of days to oversee the $ 1.2 Billion dollar project. The legislature has already approved $ 300 million dollars to be used with the $ 474 million from FEMA. Jindal said the governing board will be responsible for selling bonds to make up the rest of the money for the project.

Construction is expected to begin this year, according to Jindal. He said the work could be completed in 2013.

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