Houston psychiatric hospital closes after losing Medicare, Medicaid funding

HopeBridge Hospital, a behavioral health hospital in Houston, closed Wednesday without paying 160 workers, according to a KHOU report.

HopeBridge officials told KHOU the hospital permanently closed after failing to meet certain accreditation standards required to receive Medicare and Medicaid payments.

Although employees who stayed on with the hospital while it wound down operations were told they would be paid for doing so, the hospital shut down without compensating them.  

"The employees haven't been paid because one of the managed care providers which processes claims for Medicaid has not honored their agreement," HopeBridge CFO Anthony Brown, told KHOU.

Mr. Brown claims the managed care provider owes the hospital $500,000. He said the hospital has filed legal action in an attempt to collect the funds.

"As soon as the insurance company pays us and the bank releases the funds, we will pay the employees," Mr. Brown told KHOU.

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