JRMC To Lose Federal Payments Hospital Owes Millions, Remains on Diversion, Vows to Appeal CMS Decision

By Jacob E. Rosenbaum

Jamestown Regional Medical Center is scheduled to lose Medicare and Medicaid reimbursements on the 12th of June, according to a letter sent to the hospital by the Centers for Medicare and Medicaid services dated May 28.

The letter cited the hospital’s failure to maintain compliance with Medicare’s conditions of participation in regards to its management as the reasoning for the termination. This means that Medicare will not make payment for services furnished to patients who are admitted on or after June 12. 

Termination of Medicare participation automatically results in termination of a healthcare facility’s Medicaid agreement, which means that these payments will cease next week as well.

One critical piece of information revealed in the CMS letter is that notice of this termination was given to the hospital on February 15, 2019, nearly four months ago. However, the administration of JRMC and its parent company, Rennova Health, did not present this information to the public or the press, choosing instead to engage in a misinformation campaign and stating repeatedly that they were making efforts to improve the situation. The CMS letter detailing the date of termination was released by CMS, not JRMC or Rennova, as CMS is required by statute to give public notice of these terminations 15 days prior to their occurrence.

“We had no information whatsoever of this before last week,” said Fentress County Executive Jimmy Johnson in a recent statement. “We knew that CMS had an ongoing investigation taking place, but not that they had already informed them of terminating these reimbursements.”

In addition to the revelation that the hospital will be losing all forms of federal reimbursements, reports have surfaced which show that the financial reality at JRMC is even worse than was initially believed.

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