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Supervisor Melgar calls for committee hearing after CMS terminates Medicare payments to Laguna Honda Hospital
Summary
Supervisor Melgar said federal Centers for Medicare & Medicaid Services terminated Medicare payments to Laguna Honda Hospital, jeopardizing funding for care of about 700 residents, and requested a committee-of-the-whole hearing next week to review the city’s recertification and relocation plans.
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Supervisor Joel Engard Melgar on May 17 announced that the federal Centers for Medicare & Medicaid Services (CMS) had terminated Medicare payments to Laguna Honda Hospital and called for a committee‑of‑the‑whole hearing next week to review the hospital’s status and any relocation plans for residents.
Melgar told colleagues that Laguna Honda provides long‑term skilled nursing and custodial care for roughly 700 residents with complex medical needs and that loss of Medicare funding would eliminate the majority of revenue that pays for residents’ care and staff. He said the Department of Public Health is pursuing a recertification process and must submit a relocation plan for all residents as part of CMS requirements.
Why it matters: Laguna Honda is the city’s large long‑term skilled nursing facility serving low‑ and very‑low‑income residents; losing CMS reimbursement would significantly strain operations, staffing and capacity across the city’s health network. The hospital also represents hundreds of unionized jobs.
What Melgar asked for: a public hearing in the Board chambers, sitting as a committee of the whole, for the Department of Public Health and other stakeholders to present recertification progress, relocation plans and timelines so the board and public could evaluate next steps.
Context from the floor: Melgar credited colleagues and city leadership for early work on the issue and named the need for transparency so the public and residents’ families can track the city’s plan and offer input.
Next steps: Melgar said he would schedule the hearing for next week to allow DPH to present a relocation and recertification plan and to coordinate with the mayor’s office and other agencies. No board vote was required for the scheduling request during the May 17 meeting.
Ending: The announcement frames Laguna Honda as a critical infrastructure and safety‑net institution; the requested hearing will be a focused forum for DPH and city leadership to explain regulatory steps and contingency planning.
