Virginia psychiatric hospital loses Medicare funding

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CMS terminated Williamsburg, Va.-based Eastern State Hospital's Medicare contract April 21, according to the Daily Press.

Deficiencies at the psychiatric hospital were discovered during a June 5 survey performed by CMS and the Virginia Department of Health's Office of Licensure and Certification. A follow-up survey Sept. 17 indicated two of the three deficiencies were corrected. However, the facility was still not in compliance with special medical record requirements for psychiatric hospitals by a third visit Oct. 14 and a fourth visit Feb. 24.

"CMS has determined that your hospital's failure to comply with this condition of participation is of such a serious nature as to substantially limit the hospital's capacity to provide adequate care," the CMS termination notice states, according to the report. "Therefore we are terminating your Medicare agreement effective April 21, 2016, based on your hospital's failure to substantially meet the applicable Medicare conditions of participation for psychiatric hospitals."

Maria Reppas, spokeswoman for Virginia's Department of Behavioral Health and Developmental Services, told the Daily Press that Eastern State Hospital will lose approximately $600,000 to $700,000 per year in Medicare funds. Ms. Reppas said the state is planning to provide additional resources to Eastern State Hospital to make up for the loss.

"DBHDS retained national experts to provide review and consultation for a plan of correction," Ms. Reppas told the Daily Press. "DBHDS will continue to support Eastern State Hospital at its current level of funding, and we're bringing additional staffing resources to assist with implementing the plan of correction."

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