MODESTO — Stanislaus Surgical Hospital, expected to close after state health and safety violations resulted in its removal from Medicare and Medi-Cal insurance programs, is seeking a Hail Mary extension that will keep the 23-bed, acute-care facility open beyond the end of this month.
The hospital boasts 190 employees, with 15 of those hailing from Turlock. Even if the facility can remain open without the Medicare and Medi-Cal provider agreements, it’s expected to shed between 100 and 130 employees.
“We received formal notice of suspension of Medicare managed care and Medi-Cal managed care,” said SSH managing partner Patrick Haley. “This is being discussed at the highest levels in D.C. by legislators from both parties. We have bipartisan support for this to be addressed and an extension to be granted. I’m optimistic.”
Rep. John Duarte (R-Hughson) and Rep. Tom McClintock, both of whom represent portions of Stanislaus County, drafted a letter on April 18 to Health and Human Services Secretary Xavier Becerra, asking for an extension on behalf of the hospital.
One day later, the congressmen, who each represent a portion of Turlock, enlisted Rep. Josh Harder (D-Tracy), Rep. Jim Costa (D-Fresno) and Sen. Alex Padilla (D-California) to sign a second letter that was addressed to Becerra, CMS acting director James Bossenmeyer, and CMS administrator Chiquita Brooks-LaSure, asking for a 45-day extension to the provider agreement.
Duarte said he senses discrimination against short-stay, doctor-owned hospitals.
“There’s a federally legislated discrimination against doctor-owned hospitals. They’re not permitting any new ones, and they don’t really like the old ones to be around,” said Duarte. “The Stanislaus Surgical Hospital is owned by a lot of local surgeons here; they do a great job; they’re running a great business, they’ve got a 68,000-square-foot facility serving this community; they take all payers. It’s a very important resource to this community and I believe they’re facing discrimination by the regulatory agencies that want to move to a single-payer system.”
Haley agreed with the congressman’s assessment that SSH is a top-shelf facility.
“Our infection-control rates are the best in Stanislaus County, substantially better than the national average,” said Haley. The national average is from 0.5 to 3 percent. We’re at .06 percent.”
The infractions were detailed in two separate reports, nearly 600 pages in combined length. A letter from the CMS was sent to the hospital on April 11, stating that “the Secretary of the Department of Health and Human Services will terminate its Medicare Provider Agreement” effective April 30.
Violations ranged from SSH’s handling of patient emergencies, to issues with infection prevention and sterilization processes, to the use of certified nurse anesthetists in place of anesthesiologists, to an improper door to the endoscopy suite.
“Most of the issues were corrected before (the California Department of Public Health) concluded their survey in early February,” said Haley. “Yet, these issues that were corrected remain on the list of non-compliance issues.”
Opened in 1984, SSH treats approximately 1,500 patients each month, 65 percent of which are Medicare and/or Medi-Cal beneficiaries.
Sutter Memorial Medical Center in Modesto said it’s capable of filling the service void should SSH be forced to close.
“We have connected with physicians from Stanislaus Surgical Hospital to evaluate how we can help accommodate procedures from the facility after April 30 so these patients may continue to access care they need,” said a Sutter Health spokesperson.
