CMS will terminate Phoenix-based Hacienda HealthCare's Medicaid contract July 3, reports The Arizona Republic.
The termination notice comes less than a week after reports surfaced of maggots found near a patient's surgical incision at Hacienda's long-term care facility. The incident occurred June 12 at the same 60-bed facility where a patient in a vegetative state gave birth in December.
CMS notified Hacienda of the pending Medicaid contract termination for its long-term care facility in a June 18 letter. The agency ruled that Hacienda's facility failed to adequately address deficiencies that could hinder care quality and patient safety.
Hacienda leaders noted they still have the right to appeal CMS' decision and said they have no immediate plans to close the facility. At present, about 35 patients reside at the long-term care facility, some of whom have lived there for years.
"The leadership team at Hacienda HealthCare continues to work with state and federal oversight agencies to determine the best path forward for our [immediate-care facility] residents and their families, our staff members and our organization," leaders said in a statement to The Arizona Republic. "We intend to follow the guidelines to the letter, including the appeal process, which will allow the [immediate-care facility] to continue to operate while all parties work out a solution."