DAS says Laguna Honda lost CMS certification but remains open as staff work toward recertification

The San Francisco Department of Disability and Aging Services told commissioners May 4 that Laguna Honda Medical Center has lost its Centers for Medicare & Medicaid Services (CMS) certification for payment but retains its state license to continue operating as a skilled nursing facility.

"Certification is about payment," Executive Director Kelly Dearman said, adding that licensure allows Laguna Honda to provide skilled services and continue serving residents who pay privately or whose care is covered by the city. Dearman said the facility has paused new admissions while it pursues recertification and anticipates conditional participation in Medicare and Medi-Cal during the process.

Dearman said 114 Laguna Honda residents are under conservatorship with the Office of the Public Guardian and Public Conservator and that DAS is monitoring care for those individuals, with the Long-Term Care Ombudsman maintaining an active presence at the facility to respond to resident concerns. "DAS is in close contact with Laguna Honda on this most critical situation," she said.

Commissioners praised the department's outreach to stakeholders. The report included operational clarifications: losing CMS certification affects payment flows but not the facility's licensure to provide care. Dearman said that staff and DPH (Department of Public Health) are working with Laguna Honda toward recertification and that the facility will not close.

Next steps: DAS said it will continue monitoring care for conservatees, support recertification efforts with CMS, and keep the commission informed about progress and any service changes, including the status of new admissions.

The executive director's update was part of a broader departmental report on federal and state priorities for aging services, including CalAIM coordination and the California Master Plan for Aging.