A San Francisco hospital has reestablished its future with good news for Medicare recipients, the city's Department of Public Health (DPH) announced on Thursday.
Laguna Honda Hospital just earned its official recertification for Medicare after the health care organization was threatened by the San Francisco DPH with closure two years ago.
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The hospital is currently the largest public nursing facility in California and oversees 500 live-in patients. Now that it's been recertified for Medicare, the hospital has funding again and is safe from a full shutdown, with the facility being reimbursed by Medicare and Medicaid.
"I am grateful for the relief this brings to our current residents and their families, who have made clear that Laguna Honda is where they want to receive care," San Francisco Mayor London Breed said in a statement. "Laguna Honda embodies our city's values and what makes San Francisco special."
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In 2022, the hospital was decertified after the Centers for Medicare and Medicaid Services (CMS) found several health and safety issues during inspections. The inspections were issued after the hospital had two nonfatal overdoses.
Chris Fong, the CEO of Smile Insurance Group and a Medicare specialist, said receiving care in a local, storied hospital like Laguna Honda is important for many people and their families in the area.
"It is no small feat that Laguna Honda was granted recertification," Fong told Newsweek. "A provider or facility who loses Medicare certification comes under higher scrutiny when trying to re-certify."
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Having the Medicare recertification also means that local Medicare recipients won't have to travel further to get the care they need.
"Laguna Honda has long been a pillar of the health and well-being for generations of San Francisco families," House Speaker Emerita Nancy Pelosi said in a statement. "The full recertification by the Centers for Medicare and Medicaid Services will ensure Laguna Honda continues to provide life-saving care for patients with critical and complex medical and behavioral health conditions, regardless of their financial means."
Laguna Honda had previously been threatened with closure over the loss of the Medicare certification as Medicare made up a significant portion of its income. According to the city's DPH, more than 95 percent of Laguna Honda residents relied on Medicaid, while the rest were Medicare patients.
"Situations like Laguna Honda's are devastating for those receiving care from these facilities. Being decertified results in missing on needed funding and a lessening of resources needed to serve those needing health care services," Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. "It can also lead to hurting a facility's reputation."
He added that being recertified is a huge step in the right direction for Laguna Honda, and it will likely help to repair the reputation of the hospital after the reported safety issues.
"It's a sign that many of the health and safety protocols that were not up to standard have been remedied and that the facility is making adequate use of the Medicare funding it will receive," Beene said.
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Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning ... Read more
