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January 27, 2010, 10:10 PM ET

Arbitration Panel Awards $475-Million to Help Replace New Orleans Teaching Hospital

Louisiana's medical schools won a big victory on Wednesday, when a federal arbitration panel ordered the Federal Emergency Management Agency to pay $475-million toward rebuilding Charity Hospital, the teaching hospital in New Orleans used by Louisiana State University and Tulane University, The Times-Picayune reported. The hospital was severely damaged by Hurricane Katrina in 2005, and the state has argued that it needed to be replaced, but the federal government has resisted, saying the damage was not as bad as the state claims. FEMA had offered to pay $150-million to repair the hospital, rather than replace it.

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