CMS gives California rehabilitation hospital 30 days to avoid shutdown

CMS cut funding to San Francisco-based Laguna Honda Hospital after a recent inspection found a new list of violations, The San Francisco Chronicle reported April 14.

Roughly two-thirds of the rehabilitation hospital's budget comes from Medicare and Medicaid funding, according to The San Francisco Chronicle. The hospital will continue receiving payments for 30 days while public health officials reapply to the federal funding programs and work to address the new issues. Officials were instructed to rectify issues by April 14, but an inspection found the hospital was still struggling with quality of care and to keep out contraband.

"I want to assure you that every resource is being utilized to address the concerns of our regulatory agencies and that Laguna Honda is working very closely with CMS to finalize plans to address these concerns and continue to serve our patients through our participation in the Medi-Cal/Medicare program," Michael Phillips, CEO of Laguna Honda Hospital, said in March 30 statement.

Editor's note: This article was updated April 20 at 2:30 p.m. CT.

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