Chicago Psychiatric Hospital Will Lose Federal Money, and Its License Is Threatened After Allegations of Abuse

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The Centers for Medicare and Medicaid Services terminated an agreement and accompanying federal funding for Chicago Lakeshore Hospital, and the Illinois Department of Public Health is moving forward with plans to revoke the facility’s license.

After more than a year of lawsuits and government extensions, federal authorities this week ended their Medicare agreement with a Chicago psychiatric hospital plagued by allegations of abuse and safety violations. The Illinois Department of Public Health said Thursday it is moving forward with plans to revoke the hospital’s license.

The Centers for Medicare and Medicaid Services terminated the agreement and accompanying federal funding for Chicago Lakeshore Hospital on Monday after seven inspections since July 2018 found deficiencies that threatened the health and safety of the patients, federal records show.

The federal government will continue payment for up to 30 days for patients admitted to the hospital in Chicago’s Uptown neighborhood before midnight Monday, a federal spokesman said. Hospital officials said Monday that Lakeshore, formerly known as Aurora Chicago Lakeshore Hospital, will remain open as they work with authorities and examine their options.

Meanwhile, IDPH has taken steps with the Illinois Hospital Licensing Board to begin an administrative proceeding to “revoke Chicago Lakeshore’s state license imminently,” department spokesman Cris Martinez said Thursday.

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