Oregon State Hospital Regains CMS Compliance, Avoids Loss of Federal Reimbursement

Salem, OR. — Oregon State Hospital is once again in compliance with federal patient care and safety standards and is no longer at risk of losing eligibility for Medicare and Medicaid reimbursement, state officials announced.

Following a March 2025 sentinel event, the hospital implemented a series of corrective actions aimed at strengthening patient safety and quality of care. Surveyors from the Centers for Medicare and Medicaid Services conducted a follow-up review of the hospital’s Salem campus on January 6 and 7 to assess implementation of those changes.

In a letter received late Wednesday, CMS notified the hospital that it was “rescinding the termination action” and formally declared Oregon State Hospital in “substantial compliance.” The designation returns the hospital to a normal survey cycle and restores its “deemed status,” allowing continued billing for CMS reimbursement through its accreditation with The Joint Commission…

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