Laguna Honda annual report: 5-star CMS rating, fiscal gains and projects; commission hears explanation for temporary star dip

Laguna Honda Hospital executives presented the facilitys annual report, highlighting resident-centered programs, staff recognitions and operational milestones. CEO Deltar Sidhu said Laguna Honda serves a racially and ethnically diverse resident population and described individual resident stories that illustrated the facilitys role as a major safety-net skilled nursing facility.

Nazanin Zahir, chief quality officer, said Laguna Honda earned a five-star quality rating from the Centers for Medicare & Medicaid Services in 2025 following recertification that reflected strong results in health inspections, staffing and quality measures. "This achievement is a testament to our staff's dedication to high quality care," she said.

Interim CFO Jeff Drew reviewed fiscal year 2025 figures: operating revenue reported at $261,000,000 versus $177,000,000 in 2024, a change the presentation attributed largely to a state supplemental payment program for distinct-part nursing facilities. Operating expenses were $322,000,000 in 2025 versus $326,000,000 in 2024; the general fund subsidy decreased by about $88,000,000, the presentation said.

Executives also described capital and resiliency projects: a completed fuel line replacement, replacement of one 300,000-gallon water tank for disaster water supply, pharmacy compounding room and x-ray replacement, and kickoff of an emergency power redundancy project slated for fiscal year 2026.

Vice President Guillermo summarized the Joint Conference Committee update and asked Laguna Honda leaders to explain a recent change visible on CMS Care Compare: Laguna Hondas overall star rating had been capped at a lower level after an August substantiated resident-abuse finding (described as a G-level deficiency). CEO Sidhu explained that an abuse icon and a cap following a substantiated abuse allegation can reduce the health inspection component and that the overall rating can therefore drop even when staffing and some quality measures remain strong. Leadership said they expect some quality measures to improve over time as more short-stay data accumulate and committed to continued transparency.

Commissioners commended staff, asked for continuing engagement with unions on staffing and operations, and thanked Laguna Honda leadership and volunteers for the years work.