Can TJC close/shut down a hospital?

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Is this threat real? I understand the accreditation is needed for Medicare reimbursement, but does TJC have the authority to close a hospital?

They pulled Medicare funding to a hosp in my state due to JC issues and the hosp shut down. Not sure if JC can chain the doors like the IRS can though.

BSN GCU 2014.

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Specializes in Nursing Professional Development.

I don't think they can officially "close the hospital" -- but many hospitals are dependent upon the income from Medicare. Without the income from Medicare, they can't afford to stay open. That possibility makes the danger very real

There are other organizations that accredit hospitals that are accepted by medicare. Also, there may be other payors who will only payout to accredited hospitals. That complicates the picture ... but the "bottom line" is often financial. A hospital can't stay open if it can't take in the money it needs to pay its expenses.

Specializes in Critical Care, Education.

TCJ accreditation provided "deemed status" for CMS. So, under normal circumstances passing TJC means that the organization is 'good to go' with Medicare and Medicaid. Conversely, if problems turn up in a TJC survey, they are shared with CMS. If those issues are serious enough, CMS can indeed pull the plug on funding immediately & impose lengthy "sanctions" (no reimbursement) of a year or more. Few organizations can survive under those conditions.

But - immediate 'shutting down' actually can be done by your state agency that is responsible for licensing. AND - - - (of course) if anything hinky turns up in a TJC or CMS survey, that agency is notified.

So - long answer short - YES, TJC findings can definitely lead to a series of events that will result in shutting down an organization. TJC doesn't have that power, but their "partners" (CMS --> State agency) do have the authority.

Having TJC accreditation is NOT NEEDED to bill Medicare or Medicaid. In fact it is ILLEGAL to require it or even ask as the insurance payer if they are TJC accredited. That is one of the biggest fallacies about TJC. They are not all powerful and omnipotent. Many facilities are going away from TJC and using other services.

Specializes in PACU, ED.

True, TJC is not needed for CMS participation but certification by an approved agency is needed. My facility uses DNV. I like DNV much better than TJC. Their philosophy is not as heavy handed. DNV wants to see how you do things, make sure your actions match your words, and that you have good outcomes. TJC tends to dictate how you should operate.

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