By Associated Press - Thursday, January 16, 2020

PHOENIX (AP) - An embattled Phoenix-based health care company has announced it will keep its Medicaid contract under certain conditions after reaching a settlement with a federal agency.

The U.S. Centers for Medicare and Medicaid Services in June issued a public notice saying it would terminate its contract with Hacienda HealthCare amid two cases involving patient safety problems, the Arizona Republic reported Wednesday.

Hacienda appealed the termination, allowing it to continue receiving funding until the outcome of a hearing.

The 60-bed facility provides residential care for people with physical and intellectual disabilities and relies on Medicaid to fund its long-term services, Hacienda officials said.

Hacienda reached a settlement signed Jan. 6 that allows it to keep its contract under certain conditions, including hiring a quality improvement expert, conducting an internal deficiencies analysis and creating an improvement action plan, health officials said.

Hacienda failed to meet basic health and safety requirements in cases involving a 29-year-old patient who was raped and gave birth in 2018, and a 28-year-old male patient who was discovered with maggots, Medicaid officials said.

Terminating the contract could have a “detrimental impact on the communities that Hacienda serves as well as the Medicaid program and its beneficiaries,” according to settlement documents provided to the Republic after a public records request.

Hacienda declined Wednesday to comment on the agreement.

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