Federal health officials say funding for historic Parkland Memorial Hospital in Dallas hospital is no longer in jeopardy because broad changes were made to improve patient safety.
But the CMS said in a letter Friday that there are lingering concerns over psychiatric care at Parkland.
Federal authorities have determined that the hospital is in "substantial compliance" with Medicare regulations, according to the Dallas Morning News. An inspection last month by state regulators was triggered by a patient who was inappropriately released to a homeless shelter in July. Inspectors say the patient's psychiatric needs were ignored by Parkland staffers.
The hospital was cited for placing patients in "immediate jeopardy" of harm, a violation that threatened the hospital's $400 million in annual federal payments. But authorities say the hospital has addressed many of the problems and has modified its status so that its future funding is not at risk.
Dr. Fred Cerise, Parkland's CEO, said the outcome indicates how far the hospital has progressed in recent years.
"Parkland is a much-improved organization capable of delivering safe, high-quality care to our patients," Cerise said. "Concerns raised by CMS during the on-site survey were addressed promptly to their satisfaction."
But state inspectors returned to Parkland for another review last month and found problems with the hospital's inpatient psychiatric unit, the Morning News reported.
For instance, doctors discussed a patient's medical history in front of other patients, and nurses failed to write care plans for patients that included side effects of anti-psychotic drugs.
Parkland said it would retrain staff on patient privacy laws and mandate written plans for patients so that instructions are clearer.