Modesto, Calif.-based, physician-owned Stanislaus Surgical Hospital said it will suspend operations indefinitely and lay off employees after CMS terminated its provider agreement, a spokesperson for the hospital confirmed to Becker's.
The temporary closure, which goes into effect Sept. 14, comes after CMS terminated its provider agreement in an Aug. 30 letter for noncompliance with various conditions of participation within the agency's Medicare and Medi-Cal programs.
"It is extremely unfortunate the hospital is losing its Medicare certification despite months of concerted efforts to work with the federal government," the hospital said in a statement shared with Becker's. "It is our patients and 160 employees who will suffer the most from this decision. SSH has provided a unique patient experience to the community for over 20 years, earning us a five-star satisfaction rating from those patients. We are proud of the quality of care we have delivered."
The facility began laying off 160 employees Sept. 9, including registered nurses, admissions and office staff, nursing assistants, housekeepers, supervisors, physical therapy assistants, midlevel providers and imaging technicians, The Modesto Bee reported Sept. 9. The layoffs are anticipated before Sept. 15.
The hospital told The Bee that leadership disagrees with the action and “will continue to weigh options for long-term direction, including a potential appeal." There was no information on how long an appeal would take.
The hospital also said it will work with other healthcare providers in the area to find new jobs for the employees and that patients are being rescheduled at other facilities.
According to CMS' letter, the agreement is being terminated because the surgical hospital is not meeting Medicare requirements for basis and scope, pharmaceutical services, and infection prevention measures.
The owners of the hospital announced in April that the hospital was likely to close following numerous health and safety issues, but political support resulted in deadline extensions, according to The Bee. The April CMS notice said the Modesto hospital was not complying with nine conditions of participation in Medicare.
CMS said it would conduct an unannounced onsite survey no later than July 31 "to determine whether SSH has substantially complied with the conditions of participation and to further assess whether SSH has made sufficient progress with meeting the statutory definition of being 'primarily engaged' in providing inpatient, hospital services."