Texas psych hospital at risk of losing Medicare funding gets reprieve

Megan Knowles -

DeSoto, Texas-based Dallas Behavioral Healthcare Hospital, placed in "immediate jeopardy" of losing its Medicare funding after inspectors found safety lapses, will continue to get those funds for at least another month, according to The Dallas Morning News.

CMS extended the hospital's funding through Feb. 8 as it considers a systems improvement agreement requiring the hospital to hire outside consultants to help correct deficiencies.

CMS said it will consider the agreement if officials find there is a "compelling public interest" and Medicare patients would have serious problems accessing care if they pull funding. Additionally, the agency must find that the hospital is committed to making and sustaining improvements.

Inspectors throughout last year uncovered problems with the administering of drugs, sex among underage patients and long waits for care. The hospital submitted a corrective plan to CMS after the inspection, but when inspectors returned unannounced in October, they still found serious problems at the hospital.

In December, CMS said it intended to cut off the hospital's Medicare funding Jan. 4.

Although CMS officials said they are open to giving the hospital another chance, no agreement has been signed.

Hospital leaders will be able to comment once they confirm details with government regulators, a hospital spokesperson told the Morning News.

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