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Feds again threaten to pull funding from Oregon State Hospital

This is the second time in six weeks that federal regulators have sounded the alarm, this time related to gaps in hourly check-ins for patients.
Investigators documented incidents of patients assaulting others or being sexually coerced, without adequate responses recorded by staff.

SALEM, Ore. — Federal authorities placed Oregon's primary state psychiatric hospital on "immediate jeopardy" status Thursday, marking the second such designation for the Oregon State Hospital within the last six weeks. The status means OSH is at risk of losing federal funding if it fails to adequately resolve problems.

The Centers for Medicare and Medicaid Services said surveyors had found the hospital wasn't properly completing hourly check-ins on patients.

In a statement, the Oregon State Hospital said it's now instituted a rule updating procedures for completing and documenting "viability checks."

RELATED: Oregon’s mental health care system is flawed. Here’s what’s being done about it

“We know that patients find viability checks disruptive of their sleep,” said Dr. Sara Walker, interim superintendent and chief medical officer at OSH. “We hope to find a technology solution that will be less intrusive. It is our responsibility to ensure the safety of our patients day and night.”

According to OHA, the state hospital will submit a plan to federal authorities by early next week in hopes of lifting immediate jeopardy status. If the plan gets initial approval, a federal surveyor will do another unannounced visit to ensure that it's being followed.

Only after a successful check would the federal government take the Oregon State Hospital off immediate jeopardy status. A failure could mean OSH will lose eligibility to receive federal Medicare or Medicaid reimbursement for services.

The Oregon State Hospital has been under close scrutiny from federal regulators since the escape of criminal "aid and assist" patient Christopher Pray in September 2023. While being taken back to the facility from a medical hospital, Pray commandeered a state-owned van and led police on a chase down I-5. He resurfaced in Portland, stuck neck-deep in a muddy slough.

RELATED: Nearly all of Oregon State Hospital's beds go to criminal patients, all but ending civil commitment in Oregon

Federal investigators found OSH's procedures for patient transport woefully lacking, noting that Pray was able to steal the van because staff had briefly left Pray unattended in the vehicle while the keys were in the ignition. CMS placed the hospital on immediate jeopardy status in late 2023 for this reason.

In late April, CMS again placed the Oregon State Hospital on immediate jeopardy status. Surveyors had just arrived for a visit to the facility when they learned that a patient had died the day prior. While it did not directly contribute to the patient's death, OHA noted, surveyors found that the hospital was not properly storing and organizing its "Code Blue" emergency equipment.

Both of these immediate jeopardy designations were soon lifted when Oregon State Hospital administrators took action to correct them. However, CMS in May handed the state hospital a "statement of deficiencies" declaring that the hospital failed to meet the conditions of its participation in Medicare and Medicaid services.

Earlier in the month, CMS had issued a report finding that Oregon State Hospital staff either failed to intervene or follow up on instances of violence or sexual assault among patients, in some cases resulting in patients ending up in the Emergency Room.

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