Healthcare News & Insights

Is this hospital too unsafe to receive Medicare payments?

A Tennessee hospital stands to lose Medicare funding if it doesn’t adequately address safety concerns by the end of this week.

Mercy Medical Center St. Mary’s in North Knoxville, TN, has been informed by CMS that as of June 5, it will no longer pay for patients’ procedures unless corrections are made to patient safety violations that federal inspectors say they found.

CMS wouldn’t give specifics regarding the alleged violations, citing confidentiality rules. But it is relatively rare for a hospital to lose funding. Mercy Medical has until June 5 to submit a corrective plan that CMS would have to approve.

Mercy officials were confident they’d have the plan in place before the deadline and that patients’ care — and coverage — would be unaffected. If the hospital were to lose Medicare funding, any patients admitted after that date would have to pay out of pocket for their treatment.

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