Officials at Parkland Memorial Hospital signed on Tuesday an agreement with the Centers for Medicare & Medicaid Services that will allow the Dallas hospital to remain open while it attempts to correct deficiencies that threatened its closure.
Ron Anderson, the hospital system's embattled CEO, and John Dragovits, its executive vice president and CFO, signed the 11-page systems improvement agreement. The SIA, which is effective September 30th, will be in place for up to 19 months.
According to a statement posted on the Parkland website, the hospital "remains open, fully licensed and accredited during the term of the agreement."
In a letter to Anderson, CMS officials confirmed that under the terms of the SIA, a determination on Parkland's Medicare and Medicaid funding is on hold.
The systems improvement agreement requires Parkland Memorial Hospital to contract with an external, third-party, CMS-approved quality improvement consultant to perform a full-scale analysis of the hospital's operations. Those findings are to be compared with industry standards to ensure compliance with the conditions of participation for Medicare and Medicaid, as well as the Emergency Medical Treatment and Labor Act (EMTALA) requirements related to the timely provision of care and services.
The contractor is to work with the hospital to develop a written plan outlining what specific actions Parkland must take to return to full compliance with the Medicare conditions of participation.