PORT ANGELES — The Centers for Medicare and Medicaid Services has notified Olympic Medical Center that it had extended the date on which it would terminate its contract to Sept. 20.
OMC learned Friday it has until then to resolve violations documented by the state Department of Health during its latest visit and be in compliance with CMS regulations.
The previous termination date was Aug. 15.
CMS termination would end the ability of a provider like a hospital or skilled nursing facility to be reimbursed for the care it delivers to Medicaid and Medicare patients.
It can have devastating financial consequences for providers like OMC, where nearly 75 percent of patients are covered by those two government payers.
Since the Department of Health visited OMC in February, its surveyors have been back three times to assess the hospital’s plan of corrective action for each deficiency and determine its compliance with federal, state and its own internal standards.
The visits are the result of new and repeat deficiencies found at each of the DOH on-site surveys.
CMS must alert the public before a termination take effect. A list of terminations can be found on the CMS website.
Drug program
On Oct. 1, OMC will no longer be eligible for the federal 340B drug program that allows health care organizations with a high percentage of low-income patients to purchase outpatient drugs from manufacturers at discounted prices. Those savings can then be used to provide services to more patients.
According to an OMC representative, the hospital no longer meets the criteria for participation, which measures the proportion of low-income patients a hospital treats. The hospital hires a third-party to administer its 340B program; it reviewed the vendor’s data and determined it was correct, the representative said.
The OMC pharmacy saved about $2 million per quarter — about $8 million a year — because of the 340B program. The hospital was on track to save $8 million to $8.5 million this year before its eligibility ended.
Board meeting set
The OMC board of commissioners meets will meet tonight at 6 in Linkletter Hall in the lower level of Olympic Memorial Hospital, 939 Caroline St. A quality report update is on the agenda.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
