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Feds to end Hacienda HealthCare’s Medicaid participation

PHOENIX — Hacienda HealthCare, the Phoenix care facility where an incapacitated woman was sexually assaulted and gave birth last year, will have its Medicaid participation terminated next month.

The Centers for Medicare and Medicaid Services on Tuesday sent a letter obtained by ABC15 to the intermediate care facility, notifying them of the termination effective July 3.

The agency said that although the facility, also where maggots were found under a patient’s bandage, has corrected some of its practices, officials determined that it is still “out of compliance with other requirements.”

Hacienda said in a statement, “The leadership team at Hacienda HealthCare continues to work with state and federal oversight agencies to determine the best path forward for our ICF residents and their families, our staff members and our organization.

“We intend to follow the guidelines to the letter, including the appeal process, which will allow the ICF to continue to operate while all parties work out a solution.”

According to the federal department’s letter, if Hacienda wants to reverse its Medicaid termination, it must demonstrate through a “reasonable assurance period” that it can maintain compliance for at least 60 consecutive days.

“We remain intensely focused on the well-being and safety of every person we care for – in the ICF and all our facilities – and on making sure our residents and their loved ones face no interruption of services and no disruption to their quality of life,” Hacienda’s statement continued.

“In everything we do, our primary concern remains on delivering quality, compassionate care for every Hacienda resident who relies on us.”

Last week, the Arizona Department of Health Services issued a notice of intent to revoke the facility’s license.

The department said in a statement that the decision was based on findings from a recent survey and an “extremely disturbing incident involving inadequate patient care.”

A 28-year-old patient was found to have “several maggots collected beneath his gauze bandage near his stoma incision,” according to a Hacienda spokesperson last week.

“The department has determined strong and immediate action is necessary to further protect the Hacienda … residents,” the statement read.

The patient was transported to a local hospital for treatment, Hacienda said in a statement, adding that they hadn’t found maggots in any other patients.

Investigations into the facility began when an incapacitated patient unexpectedly gave birth in December.

Licensed practical nurse Nathan Sutherland was arrested in January after his DNA was linked to the baby.

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