CHC could lose $22M a year

The Commonwealth Health Center stands to lose about $22 million a year if its Medicare provider agreement is terminated, according to Commonwealth Healthcare Corp. chief executive officer Esther Muna.

It is therefore critical for the corporation to come up with a plan of correction that will be acceptable to the Centers for Medicare and Medicaid Services because if CHC loses its provider agreement, it will lose funding not just for the hospital but also the dialysis center because it is “hospital-based,” Muna said.

CHC will then have to rely on funding generated through its patients, where patients pay for the hospital’s overall operations, similar to what the Commonwealth Utilities Corp. operations goes through.

Muna said that losing CMS reimbursements will have a big impact on the hospital, considering the low amount of local appropriations being allocated to CHC.

CHCC received only $1.22 million for fiscal year 2015 through local appropriations.

Aside from losing Medicare funding, CHC will also lose Medicaid funding and people would lose their jobs, Muna said.

As of now the hospital is tirelessly working on addressing its plan of correction that is due for submission today, Monday, she said.

The plan of correction is intended to guide the Commonwealth Health Center in coming up with ways to fix the six deficiencies cited by CMS. CMS gave the corporation up to Dec. 22, 2014, to come up with the plan of correction. If not, the hospital’s condition of participation in Medicare will be terminated on April 3, 2015.

“There are many factors involved in changing a ‘system’ and the most significant is that caring for our patients should be of the highest priority.  From the medical staff, the nursing staff, and the administrative staff, we need to reevaluate the processes we take and ask ourselves if this ensures quality and safety.  If the answer is yes, then we are on the right track.  I assure everyone that the changes we are making are being done for the sake of the organization and for the sake of our patients.  Region IX holds us to the same accountability as any other hospital in the 50 United States and rightfully so and we appreciate that,” Muna said.

“We have extremely hardworking physicians, nurses and administrative staff at CHC and I’m proud of them.  Also, in my meetings with the hospital administrator, the hospital’s nursing director, and the team leaders involved in coming up with the plan of correction, I saw strong commitment from all of them and I am so proud of them as well,” she added.

Muna noted, though, that CHC has the right to appeal if its CMS provider service agreement is terminated.