Laguna Honda Recertified by Medicare in Major Milestone for San Francisco Hospital

More than two years after it was threatened with closure, San Francisco’s storied Laguna Honda Hospital has achieved the last step needed toward securing its future, city officials announced Thursday. Federal officials have approved the 156-year-old public nursing facility for Medicare recertification, the San Francisco Department of Public Health said in a statement.

Laguna Honda, the largest public nursing facility in the state, is home to nearly 500 medically fragile residents with needs ranging from stroke rehabilitation to dementia treatment and mental health care.

The hospital’s Medicare recertification represents full restoration of funding for the facility, which relies on California’s Medi-Cal program for 95% of its funding and on Medicare for the remainder. Medi-Cal fully restored its funding for the facility last August.

“I am grateful for the relief this brings to our current residents and their families, who have made clear that Laguna Honda is where they want to receive care,” Mayor London Breed said in a statement. “Laguna Honda embodies our city’s values and what makes San Francisco special.”

In April of 2022, federal regulators at the Centers for Medicare & Medicaid Services (CMS) decertified Laguna Honda after finding numerous health and safety issues across multiple inspection surveys, which were triggered after the hospital self-reported two nonfatal overdoses on-site.

Federal officials gave Laguna Honda just four months to close down, which triggered chaotic discharges and transfers of medically fragile patients, some of whom died shortly after transfer. The transfers were paused after outcry from city officials. Over the next year, Laguna Honda took steps to rectify deficiencies related to medication storage, hygiene control and other issues — a recertification plan with nearly 1,000 action items, according to city health officials. The hospital applied to be recertified in August 2023.

“I could not be prouder of Laguna Honda staff,” SFDPH Director Grant Colfax said in the statement. “For more than 24 months, they have worked under immense pressure to transform Laguna Honda into a top skilled nursing facility, making clear to our regulators that we can meet and will continue to meet high standards of care.”

Laguna Honda’s Medicare recertification was also celebrated by Speaker Emerita Nancy Pelosi, who pointed to the hospital’s long history of providing care to the city’s vulnerable lower-income residents.

“Laguna Honda has long been a pillar of the health and well-being for generations of San Francisco families,” Pelosi said in a statement. “The full recertification by the Centers for Medicare and Medicaid Services will ensure Laguna Honda continues to provide life-saving care for patients with critical and complex medical and behavioral health conditions, regardless of their financial means.”