The beleaguered Hacienda HealthCare will keep your Medicaid contract under certain conditions, including hiring a quality improvement expert, according to the terms of a settlement agreement.

Ending the contract could have a “detrimental impact on the communities that Hacienda serves, as well as the Medicaid program and its beneficiaries,” says a 16-page reconciliation agreement between Hacienda HealthCare and the Centers for Medicare and Medicaid Services of USA UU.

After two high profile cases of patient safety problems, the US Centers for Medicare and Medicaid Services. UU. In June they said they would terminate the Medicaid contract of the nonprofit organization based in Phoenix, which provides residential care for people with physical and intellectual disabilities.

Seven months after the termination notice, Hacienda HealthCare reached an agreement with the federal agency that was signed on January 6, according to the documents provided to The Arizona Republic after a request for public records.

Farm officials will not answer questions

Hacienda HealthCare officials on Wednesday declined to comment on the agreement.

Farm officials also did not provide updates on the Phoenix intermediate care center at 1402 E. South Mountain Ave., where a 29-year-old patient was raped and gave birth in 2018. A 911 recording indicates that center staff I did not know that the 29-year-old patient was pregnant.


In a second case of patient safety in June, worms were discovered in a 28-year-old male patient on two separate occasions, which required two hospital visits.

According to the latest count, the 60-bed center housed 34 patients who depended on Medicaid to pay for their long-term care.

In a notice to the public dated June 18, the Centers for Medicare and Medicaid Services said the Medicaid contract for the intermediate health care center at Hacienda HealthCare, also known as Hacienda de los Angeles, would be canceled as of 3 of July. The notice said that the Treasury did not meet the basic health and safety requirements of Medicaid.

The Treasury appealed the termination action, which allowed it to continue receiving Medicaid dollars pending the outcome of a hearing.

The terms of the agreement include ‘root cause analysis’ of problems

Under the terms of the agreement that allows Hacienda HealthCare to maintain its Medicaid contract, the center must hire a quality improvement consultant who specializes in intermediate care facilities for people with intellectual disabilities.

The consultant cannot be anyone who is an employee of the Treasury or has been employed in the last 24 months.

The facility agreed to hire a temporary manager who currently does not work at the Treasury and improve the “care systems” by investing in additional employees and other resources that the quality improvement expert recommends.

In addition, the agreement requires an “analysis of the root cause” of the previous deficiencies of the Treasury and an action plan to improve.

The Treasury has indicated to the federal agency “a continuous commitment to make substantial improvements, make substantive investments in personnel and resources and improve care systems,” says the agreement.

The rape of the patient and the subsequent birth of her baby were international news. A caretaker who worked at Hacienda HealthCare, Nathan Sutherland, 37, was arrested on charges of sexual assault.

A relocation plan is required if the Treasury closes

The patient’s family, now 30, filed a lawsuit against the state of Arizona in December.

The lawsuit does not name the Treasury as defendant, but two of the doctors who looked after her at the Treasury: Phillip Gear and Thanh Nguyen. Gear has delivered his medical license. The Arizona Medical Board chose not to take any disciplinary action against Nguyen.

In the summer, Hacienda closed its Mesa Children’s Hospital, based in Mesa, and removed all patients from its 74-bed skilled nursing facility, which operated on the same East South Mountain Avenue campus as the intermediate care center .

In November, Hacienda HealthCare officials confirmed that they would close the company’s five Arizona vaccine clinics for high-risk babies.

In the event that Hacienda HealthCare decides to close its intermediate care center, the conciliation agreement establishes that it must develop a relocation plan for residents.

The relocation plan should detail how personal belongings will be transported and should include a “comprehensive discharge plan” for each client, which would include a follow-up sheet to help locate customers once they move.

“It should emphasize that the client’s rights continue through the relocation process and should encourage the participation of the client and guardian (s),” says the agreement.

If Hacienda HealthCare intends to sell the facility, it must provide a proposed transition plan in writing 30 days prior to said sale, according to the agreement.

Several families of Hacienda residents have spoken publicly in favor of keeping the facility open, saying that their loved ones are safer, healthier and happier than in previous facilities and group homes.


When a reporter from The Arizona Republic visited the Hacienda HealthCare intermediate care center in July, its residents were between 16 and 67 years old.

Residents had intellectual disabilities and other complex medical needs, such as hearing, vision, breathing and heart problems.

Twenty-nine residents required a respiratory therapist. Many residents were connected to fans and feeding tubes, but could respond with smiles, eye contact and, in some cases, a handshake.

Contact health care reporter Stephanie Innes at [email protected] or 602-444-8369. Follow her on Twitter @stephanieinnes

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