After Investigation, Federal Regulators Threaten to Cut Funding to Satellite State Hospital in Junction City

The state has 10 days to produce a plan to correct management and patient safety deficiencies.

DAYS GO BY: The day room at the Oregon State Hospital in Junction City. (Oregon State Hospital)
By Nigel Jaquiss

Oregon’s troubled state hospital earned another black eye last week when federal inspectors from the Centers for Medicare and Medicaid Services published a damning 134-page report on an investigation into conditions at the 75-bed satellite state hospital in Junction City.

The report found 18 deficiencies at the Junction City facility, including a failure to have on-site management (the hospital relied on management at the main Oregon State Hospital campus in Salem, 65 miles away); shortcomings in patient safety; improper record keeping; inadequate supervision; inadequate grievance procedures; and, a failure to maintain the physical plant.

“This letter is to inform you the Centers for Medicare and Medicaid Services (CMS) has determined that Oregon State Hospital Junction City no longer meets the conditions for participation as a provider of services,” wrote Jennifer Andrews-Burke, an official at the CMS San Francisco office.

The Oregon State Hospital, which serves mentally ill patients, has been in crisis for years. It has long served a large population of “aid-and-assist” patients, people deemed unable to help defend themselves against criminal charges. That has limited the availability of beds for civil commitments for people who need a higher level of care than they get get in community settings. In recent years, the hospital has regularly had to turn away patients because of a lack of capacity and has also suffered staffing shortages curing the COVID-19 pandemic.

The feds’ recent investigation stemmed from the escape of a patient late last year. When investigators arrived in December, they found more extensive problems, which led to the findings of numerous deficiencies.

State officials now have 10 days to convince the feds they can fix all the deficiencies cited. If they do not, the state risks losing federal funding, which could happen Aug. 3.

Patrick Allen, director of the Oregon Health Authority, and the Dolly Matteucci, director of the state hospital, said they will meet the feds’ deadline.

“We look forward to addressing each of the administrative, documentation and supervision issues highlighted in this report,” Matteucci said.

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