New York system fined $925K over bed closures

State officials have fined Rochester (N.Y.) Regional Health $925,000 claiming it failed to comply with an executive order requiring hospitals to reopen hundreds of psychiatric beds that shut down during the pandemic, Politico reported Nov. 9.

Rochester Regional is the first health system to receive a financial penalty under Gov. Kathy Hochul's order, which required hospitals in the state to reopen 850 inpatient psych beds by April 1. About 500 beds are expected to be restored statewide by the end of the year. Hospitals that do not abide by the order face a $25,000 penalty per violation. 

New York's Office of Mental Health claims Rochester Regional has repeatedly failed to submit a clear plan and timeline to restore 34 beds at Newark-Wayne Community Hospital and Unity Specialty Hospital. The health system has 10 days to contest the violations. 

Rochester Regional sent state officials a detailed plan to restore the beds at the two Rochester-based hospitals on Oct. 16. The effort will require significant renovation and construction, as some beds have been shuttered for decades, according to Rochester Regional spokesperson Brett Walsh. 

"We are surprised and discouraged that OMH has apparently ended our discussions by issuing a notice to impose a civil penalty against RRH for, in their judgement, a failure to comply with the terms of our operating certificates," Mr. Walsh told Politico. "RRH strongly disagrees with this conclusion by OMH. Accordingly, RRH will exercise its rights under the law to request a hearing to contest OMH's determination."

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