Laguna Honda Hospital outlines recertification and patient relocation strategies amid CMS challenges

The City of San Francisco held a government meeting on July 4, 2025, focusing on critical updates regarding the Laguna Honda Hospital's recertification process and the associated patient transfer and relocation plan following its decertification by the Centers for Medicare & Medicaid Services (CMS).

The meeting began with an overview of the recertification efforts, emphasizing that regaining CMS certification is the highest priority for Laguna Honda. City leaders have engaged expert consultants from Health Services Advisory Group and HMA Health Management Associates to assist in this process. These consultants have been actively assessing the hospital's operations, culture, and compliance with CMS regulations since their arrival in May.

Key milestones in the recertification timeline were outlined. The initial corrective actions commenced immediately after the decertification on April 14. A first mock survey is scheduled for June, which will help identify compliance gaps and inform corrective action plans. A second mock survey is planned for August, leading up to the formal recertification application submission in September. The CMS recertification process involves a two-part survey, with the first expected to occur shortly after the application submission.

In addition to recertification, the meeting addressed the mandatory closure, patient transfer, and relocation plan required by CMS due to the hospital's decertification. The plan, approved by CMS on May 13, includes a commitment for extended payments for up to six months, contingent upon successful implementation of the transfer plan. The hospital has begun notifying patients and staff and is conducting comprehensive assessments to determine appropriate discharge destinations for the 680 patients currently housed at Laguna Honda.

The process of finding suitable skilled nursing facility (SNF) placements has proven challenging, with limited availability of beds, particularly for Medi-Cal patients, who make up the majority of Laguna Honda's residents. As of late May, only one patient had been successfully discharged to the community, highlighting the significant work ahead.

The meeting concluded with a commitment from city officials to continue collaborating with state agencies to enhance discharge efforts and improve patient outcomes. Regular updates will be provided to keep stakeholders informed of progress in both the recertification and patient relocation processes.