Paradise Valley Hospital, National City, Calif., was notified by the CMS that it is in compliance with the Medicare conditions of participation after two failed inspections under previous management. In an April 24 letter to the hospital, CMS officials said that after a March 29 inspection, the office has decided not to proceed with termination of the 301-bed hospitals Medicare certification.
Prime Healthcare Services, which has managed the facility since March 1, says it has also turned around the hospitals failing operations after investing approximately $5 million in its infrastructure, reducing monthly losses by more than 50%. Meanwhile, Luis Leon, was appointed chief executive officer of the hospital. Leon previously served as the administrator of Desert Valley Hospital in Victorville, Calif. Earlier this year, California Attorney General Jerry Brown approved the sale of not-for-profit Paradise Valley to for-profit Prime Healthcare after placing more than a dozen conditions on the $30 million deal.