Parkland Hospital to pay $1M Settlement for Alleged Patient Safety Violations

Parkland Health & Hospital System has reached a settlement agreement with the Department of State Health Services (DSHS) that resolves and discharges all potential litigation and enforcement actions for compliance issues prior to May 31, 2012.

“Parkland has taken responsibility for its compliance issues and is several months into a Systems Improvement Agreement with the Centers for Medicare and Medicaid Services (CMS) that will improve safety and quality of care,” said Debbie Branson, chair, Parkland Board of Managers. “This agreement with the state allows us to settle any issues that occurred prior to May 31 and to focus on completing the changes necessary to secure Parkland’s future as one of the most important health care assets in North Texas.”

Under the agreement with DSHS, Parkland will be assessed $1 million for violations that occurred prior to June 1, 2012. $750,000 will be payable within 30 days of the execution of the agreement. $250,000 will be held in abeyance subject to Parkland’s compliance with the terms of the agreement.

Additionally, Parkland will provide DSHS monthly reports tracking its progress toward returning to compliance with Medicare/Medicaid conditions of participation. For a period of 24 months, Parkland will also provide DSHS with information about its Quality Assurance and Performance Improvement (QAPI) Program and progress. And Parkland will inform DSHS of reportable adverse events within the health care system within two business days of becoming aware of the event. The health system will then have 45 days in order to deliver a root cause analysis of the event and an action plan with strategies to reduce the risk of similar events occurring in the future.

“We appreciate the DSHS’s willingness to work with Parkland on a settlement that allows us to focus on fixing the compliance issues that have troubled our health care system,” Branson said. “We will cooperate fully with this agreement as we continue to work toward completion of our corrective action plan.”

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