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Laguna Honda Receives Funding To Keep Doors Open Another Year

Analysis  |  By Amanda Schiavo  
   October 19, 2022

Laguna Honda Hospital relies on over $200 million a year in federal funding to operate the 156-year-old skilled nursing facility.

The San Francisco City Attorney recently announced that Laguna Honda Hospital—a healthcare provider with 782 total staffed beds and over $400 million in total patient revenue—will be provided with enough funding to keep the organization open through November 13, 2023.

"Today, we reached an agreement with CMS that extends federal funding to Laguna Honda through November 13, 2023, keeping this vital facility open and operational," The San Francisco City Attorney said in a tweet. "Resident transfers & discharges will remain paused until February 2, 2023, and the agreement provides an option to extend that pause past February. Laguna Honda will continue to make quality improvements & work towards Medicare and Medicaid recertification."

Laguna Honda Hospital relies on over $200 million a year in federal funding to operate the 156-year-old skilled nursing facility. However, concerns were raised earlier this year over the deaths of nine patients who were discharged or transferred to other facilities. A pair of lawsuits against the U.S. Department of Health and Human Services and Secretary Xavier Becerra alleges that the Centers for Medicare and Medicaid Services forced the city to implement a closure and transfer plan that put Laguna Honda patients at risk.

"Laguna Honda is a crucial resource that serves some of San Francisco’s most vulnerable," the San Francisco City Attorney tweeted. "We need to ensure this facility remains open for generations to come. Today’s agreement is [a] welcome step in that direction."

Amanda Schiavo is the Finance Editor for HealthLeaders.


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