Supervisors back settlement to preserve funding and time for Laguna Honda recertification; closed session held

The San Francisco Board of Supervisors on Nov. 1 passed, on first reading, an ordinance authorizing the City and County of San Francisco to settle its litigation with the federal Centers for Medicare & Medicaid Services (CMS) and related state agencies while the city pursues recertification for Laguna Honda Hospital.

The board also held a closed session to discuss the settlement and voted not to disclose the closed-session deliberations. The board recorded an 11-0 roll-call vote in favor of the ordinance on first reading.

Why it matters: Laguna Honda is the largest publicly run skilled nursing facility in the United States and had its federal certification paused in April after the hospital reported two nonfatal overdoses and subsequent surveys found deficiencies. CMS funds the bulk of Laguna Hondas operating budget; officials told supervisors the settlement will preserve federal payments while the hospital works to meet CMS standards and pursue recertification.

Department of Public Health (DPH) and Laguna Honda leaders told the board they have contracted outside experts and launched sustained quality-improvement work. Roland Pickens, interim CEO of Laguna Honda Hospital and director of the San Francisco Health Network, said two consulting groupsHealth Management Associates and Health Services Advisory Grouphave been working onsite to identify root causes, implement corrective action…