A problem with short supply

Kaiser Health News reported on Montana State Hospital, a state-run psychiatric hospital that was decertified by the Centers for Medicare & Medicaid Services (CMS). Unfortunately, "Federal officials found in the investigations that the hospital had failed to meet Medicare's 'basic health and safety requirements.'"

Decertification did not mean that the hospital was shut down. Rather, Medicare would no longer pay for services rendered at that facility. The state health department, which oversees the hospital, indicated that there was "a change in leadership," but has apparently not released "information related to patient deaths, severe injuries, or substantiated abuse and neglect cases, which had led to decertification in the first place."

Generally, one would think that a hospital that fails federal standards should not survive. However, it seems likely that residents in that area have few options, making this a problem of short supply. People want competent hospitals, but what if there are none that are nearby?