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Official Press Release

Contact: Brad Deen

Date: April 11, 2008

Medicare authorities accept Umstead Hospital plan


RALEIGH – Federal regulators have accepted a plan of correction from John B. Umstead Hospital in Butner, and, pending a return visit by inspectors, the state psychiatric hospital will not lose Medicare and Medicaid funding.

In a letter dated April 10, the federal Centers for Medicare & Medicaid Services (CMS), notified Umstead Hospital that its plan to correct deficiencies “has been found acceptable.” The next step will be a followup inspection that, if successful, will remove the threat of the hospital’s loss of Medicare and Medicaid revenues. The inspection must occur before April 25.

“We’re hoping that will be sooner rather than later,” said Dr. Stephen Oxley, director of the 321-bed psychiatric facility. “We’re ready to have this resolved.”

Umstead Hospital, which serves a 17-county area of north-central North Carolina, has faced loss of Medicare and Medicaid revenues since November. A re-inspection in December found deficiencies had been addressed, lifting the threat of immediate jeopardy to the hospital’s Medicare and Medicaid status. But the December inspection turned up other, less serious concerns, which regulators ultimately gave Umstead until April 25 to address.




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