Modesto, Calif.-based Stanislaus Surgical Hospital will suspend operations indefinitely, effective Sept. 14, and lay off all 160 employees, a spokesperson for the hospital confirmed to Becker's.
The layoffs, which are expected before Sept. 15, include registered nurses, nursing assistants, supervisors, physical therapy assistants, midlevel providers, imaging technicians and admissions and office staff, according to The Modesto Bee.
The decision comes after CMS terminated the 23-bed hospital's provider agreement for noncompliance with various conditions of participation within the agency's Medicare and Medi-Cal programs.
CMS said the physician-owned hospital failed to meet its requirements under three categories: basis and scope, pharmaceutical services, and infection prevention and control and antibiotic stewardship.
SSH leaders disagree with CMS and are weighing options for long-term direction, including a potential appeal.
"It is extremely unfortunate the hospital is losing its Medicare certification despite months of concerted efforts to work with the federal government," the hospital said in a statement shared with Becker's. "It is our patients and 160 employees who will suffer the most from this decision. SSH has provided a unique patient experience to the community for over 20 years, earning us a five-star satisfaction rating from those patients. We are proud of the quality of care we have delivered."
Earlier this year, CMS rescinded an April 11 determination to terminate SSH's Medicare contract if "an acceptable plan of correction is promptly implemented and substantial compliance is maintained," the agency said in a May 3 letter shared with Becker's.
CMS said it would conduct an unannounced onsite survey no later than July 31 "to determine whether SSH has substantially complied with the conditions of participation and to further assess whether SSH has made sufficient progress with meeting the statutory definition of being 'primarily engaged' in providing inpatient, hospital services."