Louisiana has opted for binding arbitration to resolve its dispute over the replacement value for Charity Hospital in New Orleans, wich was severely damaged by Hurricane Katrina in 2005.

The state said it should receive $492 million in federal reimbursement because the public hospital suffered damage amounting to half of its replacement value. The Federal Emergency Management Agency said not enough was done after the hurricane to protect the facility and its equipment, and offered $124 million as partial reimbursement.

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