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Miami hospital excluded from federal healthcare programs

Compliance Monitor, March 15, 2006

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The OIG has excluded South Beach Community Hospital from participating in all federal healthcare programs for five years-a decision that is the first of its kind.

The hospital, formerly known as South Shore Hospital and Medical Center, received word in December that the OIG intended to exclude it from the federal programs because it had violated the terms of a corporate integrity agreement (CIA). "South Beach has committed repeated and flagrant violations of its obligations under the CIA," said Inspector General Daniel Levinson in a written release. "This exclusion sends a clear message to the provider community that the OIG will not hesitate to pursue an action against those providers that fail to abide by their integrity agreement obligations."

The hospital can request a hearing to contest the OIG decision, and appeal it further to the HHS Departmental Appeals Board.

Last week hospital officials filed for Chapter 11 bankruptcy protection. Hospital owners, who purchased the hospital about a year ago, said at the time that they were looking to sell the hospital and if it couldn't be sold they would file for Chapter 7 bankruptcy protection, which means the hospital will be permanently closed and its assets liquidated.

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