UHS Reaches Agreement With CMS, California Department of Health to Keep Southwest Healthcare System's License

Universal Health Services, based in King of Prussia, Pa., has reached an agreement with CMS and the California Department of Public Health to abate the termination of Wildomar, Calif.-based Southwest Healthcare System's Medicare provider agreement and state hospital license, respectively, according to a UHS news release.

SWHCS operates Rancho Springs Medical Center in Murrieta, Calif., and Inland Valley Regional Medical Center in Wildomar.

CMS announced in April of this year it would revoke the health system's provider agreement on June 1, 2010. Shortly thereafter, the California Department of Public Health initiated a process to revoke SWHCS's hospital license.

The termination notice followed a failed inspection of the hospital. The surveyors noted a number of issues including the failure of nurses to administer drugs ordered by physicians and medical staff entering sterile areas without required outerwear, according to a report by The Californian.

UHS, however, has entered an agreement with CMS to abate the termination for one year, during which SWHCS will engage independent experts in various disciplines to analyze and develop implementation plans for SWHCS to meet the Medicare conditions of participation. During the term of the agreement, SWHCS remains eligible to receive reimbursements from Medicare for services rendered to Medicare beneficiaries, according to the release. At the end of the agreement, the system will undergo a full certification survey to determine its eligibility going forward.

UHS entered into a similar settlement agreement with CDPH relating to the license revocation. As a result of the agreement, SWHCS's hospital license remains in effect pending the outcome of the CMS full certification survey which will occur at the end of the agreement, according to the release.

Read the UHS release on Southwest Healthcare System.

Read more coverage on Universal Health Services:

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