KING OF PRUSSIA, Pa., April 20 /PRNewswire-FirstCall/ -- Universal Health Realty Income Trust (NYSE: UHT) announced today an update to the previously disclosed regulatory matter related to Southwest Healthcare System ("SWHCS"). As previously disclosed, Universal Health Services, Inc. ("UHS") advised us that, SWHCS, a wholly-owned subsidiary of UHS which operates Rancho Springs Medical Center (the real property of which is not owned by us) and Inland Valley Regional Medical Center ("Inland Valley" the real property of which is owned by us) in Riverside County, California, entered into an agreement with the Centers for Medicare and Medicaid Services ("CMS"). The agreement required SWHCS to engage an independent quality monitor to assist SWHCS in meeting all of CMS' conditions of participation. Further, the agreement provided that during the last 60 days of the agreement, CMS would conduct a full Medicare certification survey. That survey took place the week of January 11, 2010.
UHS received notification from CMS that it intends to effectuate the termination of SWHCS's Medicare and Medicaid provider agreements effective June 1, 2010. SWHCS has commenced discussions with officials from CMS regarding an agreement that will potentially rescind the provider agreement termination action. Should UHS be unable to reach an agreement with CMS, UHS intends to file an administrative appeal with the Department of Health and Human Services and/or pursue other such remedies that may be available to them.
UHS also received notification from the California Department of Public Health ("CDPH") indicating that they plan to initiate a process to revoke SWHCS's hospital license. UHS plans to appeal CDPH's action and SWHCS will remain operational pending the appeal. In that notice CDPH has indicated its willingness to rescind this revocation should SWHCS demonstrate its ability to meet all state licensing requirements.