Statement on Southwest Healthcare Services Agreement

Statement on Southwest Healthcare Services Agreement


Sept. 27, 2010--The California Department of Public Health (CDPH) has reached a settlement agreement with Southwest Healthcare System (SWHCS) which may ultimately result in the state withdrawing a revocation action taken against two hospitals in Riverside County.

SWHCS is the operator of two facilities under a consolidated license -- Inland Valley Medical Center in Wildomar and Rancho Springs Medical Center in Murrieta. On May 12, 2010, the CDPH took action to revoke the consolidated license. However, if SWHCS meets the terms of this agreement, CDPH will consider rescinding the revocation accusation.

The terms of the agreement include:

·        Resolution of six administrative penalties previously issued to the facilities.

·        The completion of a systems improvement agreement (SIA) required by the federal Centers for Medicare and Medicaid Services (CMS). The agreement includes the appointment of an independent quality improvement monitor to perform gap analysis.

·        The facilities must accomplish substantial compliance with state and federal regulations as determined by future surveys.


Should SWHCS not achieve substantial compliance, CDPH will require it to correct the deficiencies, seek arbitration that may require the facilities be sold to another licensee, or will revoke the SWHCS license.

“I’m very pleased with the negotiated agreement,” said Kathleen Billingsley, deputy director of the Center for Health Care Quality. “Hospital officials have expressed their full commitment to achieving compliance and resolving this matter. It is our sincere hope that they will be successful.”