Laguna Honda updates closure plan and CMS recertification efforts amid public concerns

The San Francisco Health Commission convened on July 4, 2025, to discuss critical updates regarding the Laguna Honda Hospital and Rehabilitation Center, particularly focusing on its closure plan and the ongoing recertification efforts with the Centers for Medicare and Medicaid Services (CMS). The meeting highlighted the challenges faced by the hospital as it navigates the complexities of patient transfers and regulatory compliance.

Laguna Honda's participation in CMS programs was terminated on April 14, 2025, which significantly impacts funding for patient care, amounting to nearly $550,000 per day. In response, hospital officials, including Chief Operating Officer Baljeet Sanghai and Chief Medical Officer Dr. Wilmy Hathaway, outlined a detailed closure and patient transfer plan that adheres to state and federal requirements. This plan, approved on May 13, 2022, mandates that the hospital demonstrate progress in relocating residents by mid-September.

The hospital is currently facing difficulties in finding appropriate placements for its residents, with care teams working diligently to assess individual needs and facilitate transfers. The process has been complicated by unanswered questions regarding discharge appeals and the overall transfer process, which have raised concerns among residents and their families. Hospital representatives emphasized their commitment to providing support through town halls and individual meetings.

A significant aspect of the meeting was the announcement of a required reduction in bed capacity from three to two residents per room, resulting in a loss of 120 beds. This change is necessary to comply with CMS regulations aimed at improving the quality of care. The hospital is actively working to minimize disruption during this transition.

Public comments during the meeting reflected deep concern from community members and healthcare professionals regarding the safety and well-being of residents during the transfer process. Several speakers urged the commission to halt all patient relocations until safe and appropriate placements are secured, citing instances of transfer trauma and the potential for increased mortality rates among relocated patients.

The commission acknowledged the gravity of the situation, with ongoing discussions about the need for immediate financial support from the city to sustain operations until recertification is achieved. The hospital's leadership reiterated their focus on preparing for a successful recertification survey, emphasizing that they will not submit their application until they are fully ready.

As Laguna Honda continues to navigate these challenges, updates on the closure plan and recertification efforts will be provided regularly to the Health Commission and made available to the public. The situation remains fluid, with the health and safety of residents at the forefront of ongoing discussions.