Shands Lake Shore Regional Medical Center in Lake City, Fla., is voluntarily terminating its Medicare contract, effective Aug. 31, according to a notice published by CMS.
The hospital, owned by the Lake Shore Regional Hospital Authority, is ending its Medicare contract on the same day it is slated to close. The hospital announced in July that it is shutting down due to declining patient volume and financial challenges that have resulted in losses that are unsustainable.
The announcement came after Franklin, Tenn.-based Community Health Systems, which operates the hospital, entered into a settlement and termination agreement with the Lake Shore Hospital Authority for the planned closure of Shands Lake Shore on June 30, according to a filing with the Securities and Exchange Commision. After Shands Lake Shore closes, CHS will operate 12 hospitals in Florida.
Though the hospital’s Medicare contract will end Aug. 31, it can still receive payments until the end of September for patients admitted prior to the termination date, according to the CMS notice.
More articles on healthcare finance:
Providence posts $538M loss, lays out 3-part strategic plan
Medicare payment rules for 2021: 11 notes for hospital execs
Steward, medical billing company accused of illegal ‘revenue enhancement’ scheme
© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.