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Health Commission presses DPH on Laguna Honda after federal survey warns of potential Medicare/Medi‑Cal termination

San Francisco Health Commission · April 5, 2022
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Summary

The San Francisco Health Commission received an extended update on Laguna Honda Hospital after state and federal surveys flagged lapses tied to illicit substances on campus; DPH said it is implementing screening, security and training measures and preparing for a federal revisit scheduled by April 14.

The San Francisco Health Commission on April 5 pressed department leaders for details after regulators flagged problems at Laguna Honda Hospital that could threaten the facility’s participation in Medicare and Medi‑Cal.

Dr. Grant Colfax, director of the Department of Public Health, told commissioners that two on‑site nonfatal overdoses last July triggered an extended survey and a March 30 notice from federal Centers for Medicare & Medicaid Services saying the hospital must meet applicable requirements or face termination. "Ensuring that we continue participation in the Medi‑Cal and Medicare program is critical," Colfax said, noting Laguna Honda serves more than 700 residents.

Roland Pickens, director of the Health Network, said DPH is pursuing a short‑ and long‑term corrective path. "We are committed to getting this right," Pickens said, describing measures that include increased screening for prohibited items, stepped‑up security, staff training and refined protocols. Pickens also said a federal quality improvement team has been on site to provide technical assistance and that a state revisit is due to conclude by April 14.

Commissioners praised the department’s transparency and the pace of follow‑up. Commissioner Chao said the commission’s oversight role mattered in large facilities such as Laguna Honda: "This is really a very important function for our Health Commission to be sure that the work is being done by our department and taken seriously and carefully," she said. Commissioner Guillermo, chair of the Laguna Honda Joint Conference Committee, and Vice President Lori Green likewise commended staff for rapid reporting and for redeploying quality teams from Zuckerberg San Francisco General to support operations.

DPH officials told the commission that addressing illicit‑substance risks on an open campus that serves residents with complex behavioral health needs is challenging, and that the department has asked for and received additional resources across city, state and federal partners. Pickens said DPH will keep the commission updated on the resurvey outcome and any follow‑up actions required to maintain regulatory participation.

No formal action was taken; commissioners offered support and requested continued daily or frequent updates until the survey is closed.