CMS Terminates Medicare Agreement with Magnolia Ridge Over Compliance Failures

The Centers for Medicare and Medicaid Services (CMS) has terminated its Medicare provider agreement with Magnolia Ridge in Gardendale, Alabama, due to the facility's failure to meet Medicare and Medicaid health and safety participation standards. This follows multiple surveys by the Alabama Department of Public Health uncovering significant deficiencies, including issues categorized as immediate jeopardy, leading to the facility's non-compliance with CMS Conditions of Participation. The termination prohibits Medicare payments for services to beneficiaries admitted after April 22, 2025, though payments for earlier admissions may continue temporarily. The CMS action follows earlier enforcement steps, including denial of payments for new admissions, and the facility is scheduled for closure by the Alabama Department of Commerce.