Medicare and Medicaid administrators denied Laguna Honda Hospital's plan to increase its bed capacity by 120 beds following reputational damage from two patient drug overdoses in 2022. The facility experienced decertification and a loss of $200 million in funding, which led to the relocation of several patients. Although Laguna Honda has since regained its certification and funding, it remains restricted by federal regulations that prevent it from having triple rooms, which impacts its ability to expand. This bureaucratic decision continues to affect the hospital's operations and capacity.
Laguna Honda Hospital's request to expand its patient capacity by 120 beds has been denied by Medicare and Medicaid due to past incidents involving patient overdoses and decertification.
The hospital is the largest nursing home in San Francisco and had aimed to return to its pre-2022 size of 769 beds but faced bureaucratic challenges from the CMS.
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