Gov. Eloy S. Inos extended anew on Friday the state of emergency declaration for the Commonwealth Healthcare Corp., even as he noted CHC’s “improving but still uncertain financial state and is in arrears in regards to utility payments.”
“Although CHC’s financial condition is improving, it is still in such a state that it is jeopardizing CHC’s federal funding because it affects CHC’s ability to maintain adequate infrastructure, equipment, and personnel,” the governor said in his Executive Order 2013-20.
The emergency declaration suspends procurement regulations to ensure compliance with the U.S. Center for Medicare and Medicaid Services certification, among other things.
The Sept. 27 executive order remains in effect for 30 days.
Since last year, CHC’s state of emergency declaration has been extended every month. Inos told reporters in August that he is poised to lift this in early fiscal year 2014. That fiscal year begins tomorrow, Oct. 1.
In 2012, CHC was notified by federal authorities that due to deficiencies in its operations and infrastructure, CHC will cease to be eligible for Medicare/Medicaid payments, along with other penalties if the deficiencies are not timely remediated.
CHC receives some $22 million in annual reimbursements from Medicaid and Medicare. Without the certification for continued Condition of Participation, CHC stands to lose this huge federal assistance.
While CHC was given a temporary reprieve, federal authorities have yet to render a final decision on CHC’s eligibility for Medicare/Medicaid payments.