City of Angels Announces Result of JCAHO Survey, Confident of Pending State-Federal Review

Medical Center Operations Continue Without Interruption


LOS ANGELES, Nov. 18, 2005 (PRIMEZONE) -- City of Angels Medical Center today announced results of a survey of its laboratory conducted by the Joint Commission on Accreditation of Healthcare Organizations in late 2004 while the medical center's laboratory functions were outsourced by the hospital's previous CEO. As a result of alleged deficiencies that occurred during that period, JCAHO accreditation has been withdrawn.

The decision reflects only conditions in the laboratory in the months preceding the survey, will not interrupt the medical center's ongoing operation, and does not affect its licensure. Patients will continue to receive quality care, and relationships with employees, medical staff, insurers and vendors will remain unchanged. A survey by the Department of Health Services/CMS on behalf of the state and federal sectors will now be conducted and will reflect changes at the laboratory since 2004. The DHS/CMS survey is expected to be concluded any time within the next two weeks.

Roger Gillott, spokesman for City of Angels, said, "We are disappointed that JCAHO's decision did not take into account our very significant subsequent improvements, and we are confident the DHS/CMS survey will validate our progress. We are committed to providing much-needed, high-quality and accessible hospital services to the community. For the past year, City of Angels has not only rectified alleged laboratory deficiencies cited by JCAHO but has also greatly enhanced operations throughout the hospital to further solidify the quality of patient care."

The medical center terminated the outsourcing arrangement, rehired the hospital's highly-regarded previous Laboratory Medical Director and other staff, and has taken steps to ensure that laboratory policies and practices reflect industry best practices. The rehired Laboratory Medical Director was in charge of the laboratory during JCAHO's previous survey in 2002, at which time the laboratory received a highly positive score of 99%. The CEO who set up the outsourcing operation is no longer with the medical center.

The medical center also has questioned certain scoring by JCAHO surveyors during the 2004 review, pointing out that some surveyors apparently were unfamiliar with the commission's newly-implemented accreditation and scoring process and that JCAHO President Dennis O'Leary himself had said "It is unlikely we will have gotten it (the new process) right the first time." The alleged deficiencies did not result in any harm to patients, directly or indirectly.

About City of Angels:

City of Angels Medical Center engages in the ownership, management and operation of hospitals in the Greater Los Angeles area, and provides much-needed medical and surgical services as well as adult psychiatric services. It has approximately 220 licensed beds at two campuses -- City of Angels Downtown near central Los Angeles and City of Angels Ingleside in Rosemead in the San Gabriel Valley.



            

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