The Laguna Honda Hospital and Rehabilitation Center has been approved for Medicaid recertification by state regulators. This positive turn of events has been lauded by officials in San Francisco, who have been striving to keep the facility open despite threats of closure.
The Medicaid recertification, which was approved by the California Department of Public Health and the state’s Department of Health Care Services, is crucial for the operation of Laguna Honda. The facility serves a significant number of lower-income individuals through Medicaid (known as Medi-Cal in California), with more than 95 percent of its patients relying on this funding. Furthermore, Laguna Honda provides over 30 percent of all skilled nursing beds in the city.
In April 2022, the federal Centers for Medicare and Medicaid Services (CMS) terminated Laguna Honda’s participation in Medicare and Medicaid provider programs. This decision threatened to close the hospital, which has served the community for over 150 years. The CMS and state regulators had cited safety concerns at Laguna Honda and ordered the hospital to relocate all 700 patients while also revoking its Medicare and Medicaid provider agreements.
The concerns ranged from the presence of drug paraphernalia in the facility, inadequate infection prevention and control, and instances of missed medication doses. Initially, a deadline was set for the involuntary discharge of patients by this September. However, following Wednesday’s recertification by the state agencies on behalf of CMS, this is no longer an imminent concern.
San Francisco Mayor London Breed and House Speaker Emerita Nancy Pelosi both expressed relief and appreciation for the recertification decision. Theresa Rutherford, president of Service Employees International Union Local 1021 representing workers at the hospital, echoed their sentiments, highlighting the positive impact on staff and patients.