Chicago psychiatric hospital loses Medicare funding

A psychiatric hospital in Chicago lost its ability to bill Medicare and Medicaid amid allegations of physical and sexual abuse of youth patients, according to CBS Chicago.

CMS terminated funding from Chicago Lakeshore Hospital Dec. 23. Federal officials said the hospital was "not in compliance" with certain "patients' rights" regulations.

The notice came a few days after a Cook County public guardian filed a lawsuit against the hospital alleging that youth patients were physically and sexually abused inside the hospital by staff and fellow patients from 2017-18. As of November 2018, the Illinois Department of Children and Family Services stopped sending children to Chicago Lakeshore Hospital and oversaw the facility 24/7 until all foster children were released. The state agency no longer places children in the facility.

In a statement to CBS Chicago, a hospital spokesperson said, "In light of all that has been taken out of context, distorted, or exaggerated, it has been difficult over the last year to give justice to the great care Chicago Lakeshore Hospital provides every day … We will continue to provide the best mental health and substance use disorder care for the residents of Chicago and Illinois while we examine our options."

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