{"id":2052,"date":"2025-07-16T10:16:46","date_gmt":"2025-07-16T02:16:46","guid":{"rendered":"https:\/\/sportpro.cc\/?p=2052"},"modified":"2025-07-16T10:16:46","modified_gmt":"2025-07-16T02:16:46","slug":"medicare-oversight-gaps-deadly-errors-at-for-profit-rehab-hospitals-like-encompass-go-unpunished","status":"publish","type":"post","link":"https:\/\/sportpro.cc\/?p=2052","title":{"rendered":"Medicare Oversight Gaps: Deadly Errors at For-Profit Rehab Hospitals Like Encompass Go Unpunished"},"content":{"rendered":"\n<p>#Tags: #EncompassHealth #RehabHospitalSafety #MedicareOversight #ForProfitHealthcare #PatientSafety #HospitalInspection #MedicalNegligence #HealthcareAccountability #PreventableDeaths #CMS<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Widespread Safety Failures in a Booming Industry<\/h3>\n\n\n\n<p>Rehabilitation hospitals, particularly those operated by for-profit corporations like Encompass Health, have grown into a highly lucrative sector of the healthcare industry. Yet despite their rapid expansion and profitability, serious incidents involving patient harm\u2014including preventable deaths\u2014are going largely unpunished and undisclosed by federal oversight bodies.<\/p>\n\n\n\n<p>Encompass Health, the nation\u2019s largest for-profit rehab hospital chain with 168 locations, has been linked to a disproportionate number of safety violations and poor outcomes, including some of Medicare\u2019s worst-rated readmission facilities. While Medicare tracks key safety metrics such as \u201cdischarge to community\u201d and \u201cpreventable readmissions,\u201d there are no standardized penalties\u2014like fines or public five-star ratings\u2014for rehab hospitals, unlike nursing homes or general hospitals.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Fatal Mistakes at Encompass Health Facilities<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Carbon Monoxide Poisoning in West Virginia<\/h4>\n\n\n\n<p>Elizabeth VanBibber, 73, died after a carbon monoxide leak during construction at Encompass\u2019 Huntington, WV facility. Despite warnings to isolate construction areas, Encompass failed to implement proper safeguards. Staff initially ignored her symptoms. Emergency responders found dangerously high CO levels. She died days later.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Alarming Medication Errors in South Dakota<\/h4>\n\n\n\n<p>Frederick Roufs, 73, died after receiving the wrong medication\u2014hydralazine instead of hydroxyzine. Inspectors found a troubling pattern of medication errors at the Encompass Sioux Falls hospital. Another incident involved a patient receiving 10x the insulin dose due to a misread order.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Death from a Preventable Fall in Tennessee<\/h4>\n\n\n\n<p>In Jackson, TN, a patient died in a pool of blood after falling from bed. The alarm meant to alert staff was switched off. Similar alarm failures occurred at Encompass&#8217; Morgantown, WV facility, where a patient died with a severe head wound.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Improper Use of Antipsychotics<\/h4>\n\n\n\n<p>In Texarkana, TX, Encompass received an \u201cimmediate jeopardy\u201d violation for using antipsychotic drugs to pacify patients\u2014violating federal guidelines.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">No Penalties Despite Deadly Violations<\/h3>\n\n\n\n<p>While these errors are documented by federal inspectors as \u201cimmediate jeopardy\u201d violations\u2014indicating a serious threat to patient health\u2014CMS cannot impose fines on rehab hospitals. The only enforcement option is to cut off all Medicare and Medicaid funding, a rarely used and extreme measure.<\/p>\n\n\n\n<p>This stands in contrast to nursing homes, where nearly 8,000 facilities were fined in the past three years, with average penalties around $28,000. As a result, even the most egregious violations at rehab hospitals carry no meaningful consequences, as long as facilities pledge to correct the issues.<\/p>\n\n\n\n<p>One exception: California fined Encompass $75,000 in a case involving blood sugar mismanagement that led to a patient\u2019s death\u2014thanks to state laws allowing such penalties.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Profit First? For-Profit Model Under Scrutiny<\/h3>\n\n\n\n<p>Encompass\u2019 financial success is undeniable: In 2024, the company reported an 11% net profit, earning $597 million on $5.4 billion in revenue. It plans to open 17 new hospitals by 2027. Encompass frequently enters new markets by forming joint ventures with nonprofit hospitals, which shut down their internal rehab units in exchange for equity.<\/p>\n\n\n\n<p>But critics say this profit-driven model compromises patient care. A University of Texas study found that for-profit status was the strongest predictor of higher unplanned readmission rates in rehab hospitals.<\/p>\n\n\n\n<p>In fact, Encompass owns 34 of the 41 rehab hospitals that Medicare rates as having statistically worse preventable readmission rates after discharge. It also owns 28 of the 87 hospitals with poor readmission rates during patients\u2019 stays\u2014mostly for-profit facilities.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Hidden from Public View<\/h3>\n\n\n\n<p>Medicare does not publish rehab hospital inspection reports on its Care Compare website, leaving patients and families in the dark. KFF Health News had to sue the government to access these records. Unlike nursing homes, rehab facilities receive no public star ratings for safety or quality.<\/p>\n\n\n\n<p>Although the Biden administration proposed a 1-to-5-star rehab rating system, its future remains uncertain. The industry\u2019s trade group, the American Medical Rehabilitation Providers Association, has pushed for a delay. The Trump administration has not confirmed if it will proceed with the reform.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">The Troubling Case of Paul Webb Jr.<\/h3>\n\n\n\n<p>Paul Webb Jr., 74, was recovering from a brain bleed at Encompass\u2019 Erie, PA facility in 2021. According to a lawsuit, staff left him seated for hours, causing a pressure ulcer. The wound worsened in subsequent care and ultimately contributed to his death. His family\u2019s lawsuit alleges negligence in failing to reposition him regularly.<\/p>\n\n\n\n<p>Webb\u2019s case is one of several lawsuits filed against Encompass alleging that improper wound care and neglect led to fatal outcomes. The company denies liability in these cases, stating that its pressure sore rates align with national averages.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">A History of Legal Trouble<\/h3>\n\n\n\n<p>Encompass has a checkered past. Formerly known as HealthSouth, the company was involved in a $2.7 billion accounting fraud scandal in 2003 and paid $325 million to settle Medicare fraud claims. In 2019, it paid $48 million to settle allegations of misdiagnosing patients and admitting those too ill to benefit from rehab. It has consistently denied wrongdoing.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion: Accountability Urgently Needed<\/h3>\n\n\n\n<p>The pattern of deadly errors, lack of penalties, and hidden safety data raises urgent questions about patient safety and oversight at for-profit rehab hospitals like Encompass Health. As this segment of healthcare continues to grow rapidly, experts warn that without stronger regulatory tools\u2014including fines and public reporting\u2014preventable tragedies will continue to go unpunished and undisclosed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>#Tags: #EncompassHealth #RehabHospitalSafety #MedicareOversight #ForProfitHealthcare #PatientSafety #HospitalInspection #MedicalNegligence #HealthcareAccountability #PreventableDeaths #CMS Widespread Safety Failures in a Booming Industry Rehabilitation hospitals, particularly those operated by for-profit corporations like Encompass Health, have grown into a highly lucrative sector of the healthcare industry. Yet despite their rapid expansion and profitability, serious incidents involving patient harm\u2014including preventable deaths\u2014are going [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"saved_in_kubio":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2052","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/posts\/2052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sportpro.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2052"}],"version-history":[{"count":1,"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/posts\/2052\/revisions"}],"predecessor-version":[{"id":2053,"href":"https:\/\/sportpro.cc\/index.php?rest_route=\/wp\/v2\/posts\/2052\/revisions\/2053"}],"wp:attachment":[{"href":"https:\/\/sportpro.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sportpro.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sportpro.cc\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}