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OMC is about to lose its Medicare reimbursements

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PORT ANGELES – Olympic Medical Center is facing termination of its Medicare provider agreement following a determination by federal health officials that the hospital remains out of compliance with key patient care standards.

In a letter dated June 30, 2025, the Centers for Medicare & Medicaid Services (CMS) informed Olympic Medical Center that a follow-up survey conducted by the State Department of Health on June 12 found the hospital was still not in “substantial compliance” with two critical Conditions of Participation (CoPs), which are required for Medicare-approved hospitals: Patient Rights and Nursing Services.

CMS stated that because of these deficiencies, Olympic Medical Center no longer meets the requirements for participation in the Medicare program. As a result, the Medicare provider agreement between CMS and the hospital is scheduled to terminate on August 15, 2025.

The letter warns that after that date, Medicare will not reimburse the hospital for services provided to patients admitted on or after August 15. Patients admitted prior to that date may still have coverage for up to 30 days of inpatient care.

However, CMS’s website currently doesn’t list OMC on its list for possible termination.  CMS website says:“Regulations for providers and suppliers require us to notify the public about Medicare terminations before they take effect.”

Over 60% of OMC’s patients rely on Medicare.

The CMS letter to OMC officials says termination may be avoided if the hospital corrects the deficiencies and submits an acceptable plan of correction, verified by the state health agency. But CMS said the hospital was to submit its plan no later than July 10, 3 weeks ago.

CMS has not publicly released specific details of the cited deficiencies, but such violations generally involve failure to protect patient rights or provide adequate nursing services.

Newsradio KONP has reached out to board and hospital officials on the letters and OMC’s potential level of service and if it can be in comiance before the deadline. We are still waiting for a response.

OMC is beginning the search for a new CEO, after Darryl Wolfe resigned last week.

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