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PA Hospital's Financial Woes Trigger Harsh Repercussions

John Commins, for HealthLeaders Media, April 11, 2012

In a March 23 letter to Merlyn Knapp, the medical center's CEO, state health officials cited a lack of "proper equipment and supplies" for surgical services. "Until you can provide the department with evidence that the operating room equipment has been properly inspected, there is sufficient equipment, and there are adequate supplies, the ban on admissions also applies to your surgical services department."

Knapp said in a media release that "we do not agree with some of the findings and are currently working on a plan to address and appeal those findings."

It didn't matter. The state ordered an immediate ban on new admissions, surgical services and emergency and outpatient procedures.

Whatever else was left was not enough to keep the hospital running, so things went downhill from there. On April 3, the Centers for Medicare & Medicaid Services told Saint Catherine that because of the deficiencies identified by the state the hospital no longer met the federal requirements for participation in Medicare. That sealed the deal, and the hospital filed for Chapter 11 days later.

"We are evaluating all future options for Saint Catherine Medical Center, including a potential sale and re-opening of the hospital," Knapp said.

And now comes the fallout.

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2 comments on "PA Hospital's Financial Woes Trigger Harsh Repercussions"


lisa (4/16/2012 at 11:46 PM)
This issues had nothing to do with the quality of care provided by a wonderful staff. The issues were financial and the fact that money was not spent to do what was required and needed to be done. It is of note that none of this had anything to do with a patient injury or death.

JJ (4/16/2012 at 3:25 PM)
"The Pennsylvania Department of Health in March found deficiencies and violations that threatened patient health and put their safety in immediate jeopardy." Interesting to note that various views provided in "CMS Hospital Compare" would never lead you to believe this. Valuable tool.