{"id":143,"date":"2026-05-09T11:01:33","date_gmt":"2026-05-09T11:01:33","guid":{"rendered":"https:\/\/sanantoniomovingreport.com\/?p=143"},"modified":"2026-05-09T11:01:33","modified_gmt":"2026-05-09T11:01:33","slug":"feds-set-to-pull-medicare-medicaid-funding-from-laurel-ridge-after-safety-failures","status":"publish","type":"post","link":"https:\/\/sanantoniomovingreport.com\/?p=143","title":{"rendered":"Feds set to pull Medicare, Medicaid funding from Laurel Ridge after safety failures"},"content":{"rendered":"
\n

After finding serious safety and oversight failures, are moving to cut off Medicare and Medicaid funding to Laurel Ridge Treatment Center \u2014 one of the largest freestanding psychiatric hospitals in the region, with a 330-bed campus in North Central San Antonio \u2014 a decision that could disrupt care for some of the city\u2019s most vulnerable psychiatric patients.<\/p>\n

Read more New heart disease guidelines could mean more cholesterol treatment in San Antonio<\/a><\/p>\n

The facility filed a legal challenge on Thursday seeking to halt the decision.<\/p>\n

Medicare and Medicaid are government-funded health insurance programs that cover different populations. Medicare is a federal program primarily for people 65 and older and some individuals with disabilities, while Medicaid provides coverage for low-income individuals and is jointly funded by the state and federal governments.<\/p>\n

The Centers for Medicare and Medicaid Services (CMS), part of the U.S. Department of Health and Human Services, that it no longer meets federal requirements to participate in the programs, according to federal records.\u00a0<\/p>\n

The move follows a series of findings last year documenting patient safety risks, including incidents that regulators said placed patients in \u201cimmediate jeopardy\u201d \u2014 the most severe level of deficiency.<\/p>\n

But beyond the regulatory action, local officials say the decision raises a pressing question: Where will patients go now?\u00a0<\/p>\n

Safety failures cited by regulators<\/h4>\n

Federal inspection reports outlined widespread issues at the facility, including failures to maintain a safe environment, properly monitor patient risks and ensure adequate staffing.<\/p>\n

In one case documented in an August inspection report, inspectors witnessed a patient self-harm with a razor blade that she had brought into the facility. The report stated the same patient had been found self-harming with a razor blade seven days prior to this incident.<\/p>\n

Inspectors also noted the facility had been cited by CMS in April for not appropriately screening patients for contraband. They submitted a strategy to correct the issue, inspection reports stated that incidents of contraband had started to decline following implementation of the plan, going from 17 incidents in April to 12 in May.\u00a0<\/p>\n

Then in late May, the governing board of Laurel Ridge moved to revert the screening policy back to searching patients on the unit instead of on arrival, an action inspectors said \u201cjeopardized patient safety, for decreased admission times.\u201d<\/p>\n

Contraband incidents proceeded to climb from 12 in May to 22 in June and 28 incidents in July with no further intervention.\u00a0<\/p>\n

The report also described a broader pattern of safety concerns inside the facility. Patients were found to have access to potentially dangerous objects, including cords, chemicals and other unsecured items that could be used for self-harm or to harm others. Inspectors also identified staffing gaps that at times left units without a registered nurse, raising concerns about adequate supervision and emergency response.<\/p>\n

In addition, the facility failed to track and analyze incidents in a way that could prevent repeat harm, according to the report. Inspectors also noted unsanitary conditions and issues related to patient dignity, pointing to a care environment that did not meet federal standards.<\/p>\n

Prior reporting by Public Health Watch found that three patients died inside Laurel Ridge in 2025, compared to just one death in the previous four years.<\/p>\n

The cumulative failures, regulators said, meant the hospital could not meet federal standards for patient rights, quality oversight or nursing services.<\/p>\n

What happens now<\/h4>\n

The letter from indicates the termination is set to take effect on April 30.<\/p>\n

After that date, Medicare will no longer pay for services for any patients newly admitted to Laurel Ridge. Patients who were admitted before the deadline can continue receiving covered care for up to 30 days after the termination, according to CMS.<\/p>\n

Federal matching funds will not be available to the state for new Medicaid patients admitted after April 30, and coverage for existing patients is limited to the 30-day transition period.<\/p>\n

Because Medicaid is administered by states with federal funding support, Texas health officials are responsible for helping coordinate care when a facility loses eligibility to participate in the program.\u00a0<\/p>\n

Thomas Vazquez, assistant press officer for the Texas Health and Human Services Commission, told Public Health Watch that state officials are already working to address that gap by working quickly to find placements for Laurel Ridge\u2019s Medicaid patients.\u00a0<\/p>\n

It remains unclear how many patients will need to be relocated or whether other providers in the region have the capacity to absorb them.<\/p>\n

Read more Where I Live: West Side<\/a><\/p>\n

The San Antonio Report reached out to the Texas Health and Human Services Commission but did not receive a response by the time of publication.<\/p>\n

In a statement, Laurel Ridge CEO Ashley Sacriste said the facility disputes CMS\u2019 determination that it does not meet Medicare participation requirements and has already taken legal action.<\/p>\n

\u201cWe dispute the basis of this action, and although we had hoped to work collaboratively with CMS, we filed litigation on April 23 seeking to abate this decision,\u201d Sacriste said.<\/p>\n

Sacriste added that the facility is continuing to provide care to patients while it works through the regulatory process.<\/p>\n

\u201cWe are taking all efforts to be deemed as a provider of choice and fulfill all obligations,\u201d she said.<\/p>\n

Federal regulations allow facilities to challenge termination decisions through an administrative appeals process.<\/p>\n

Even with a legal challenge underway, the termination is scheduled to take effect at the end of the month. <\/p>\n

If Laurel Ridge is able to halt or reverse that decision through the appeals process, Medicare regulations require the facility to correct the deficiencies identified by regulators and demonstrate they are unlikely to recur before it can be reinstated \u2014 meaning a legal action alone will not automatically restore funding.<\/p>\n

Local concerns<\/h4>\n

For District 5 City Councilwoman Teri Castillo, the concern is not just about one facility \u2014 but what happens when a major provider serving low-income patients is no longer an option.\u00a0<\/p>\n

\u201cBig-picture, we should be thinking about how we\u2019re going to fill the gaps in providing access to high quality care,\u201d Castillo said. \u201cSeeing the folks who may have Medicaid or Medicare no longer being able to receive support at Laurel Ridge is concerning for a number of reasons.\u201d<\/p>\n

Among those reasons Castillo cited a high number of individuals who are uninsured and or can\u2019t afford copays or deductibles, reductions to federal and state public health funding and a broader trend in San Antonio, where many residents already rely on emergency services when they cannot access routine care.<\/p>\n

With roughly 70% of San Antonio Fire Department calls related to emergency medical services, she said the loss of a psychiatric provider could push more people into crisis situations \u2014 and into the 911 system.<\/p>\n

\u201cSo a concern that we have is that we may see an increase in calls for medical care because folks won\u2019t know necessarily where they can receive that care,\u201d Castillo said. \u201cIt can have a cascading effect, but it is something that we should be following to see. Are we going to see an increase in calls and where will folks be going as an alternative to Laurel Ridge?\u201d<\/p>\n

Laurel Ridge, which opened its doors in 1987, provides inpatient and outpatient behavioral health services, including treatment for acute psychiatric crises, substance use disorders and specialized programs for children, adolescents, adults and veterans.<\/p>\n

A total of 759 psychiatric beds are available in the San Antonio region, none are expected to be taken offline as a result of the funding cut. Other providers in the area offer various behavioral health services depending on patient needs, including the Center for Health Care Services and University Health, Castillo said.<\/p>\n

Castillo added that access is not just about availability \u2014 it\u2019s about awareness.<\/p>\n

\u201cWe have a responsibility to share with the public what health care is available,\u201d she said. \u201cThe concern is: are folks going to know where to go to access alternative care if Laurel Ridge was their primary facility.\u201d<\/p>\n

Read more A San Antonio veteran\u2019s search for relief led him to a psychedelic drug in Mexico<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

After safety failures led regulators to cut off funding at Laurel Ridge, the 330-bed psychiatric hospital has filed a legal challenge.<\/p>\n","protected":false},"author":1,"featured_media":142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nFeds set to pull Medicare, Medicaid funding from Laurel Ridge after safety failures - San Antonio moving report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sanantoniomovingreport.com\/?p=143\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Feds set to pull Medicare, Medicaid funding from Laurel Ridge after safety failures - 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