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Mind Springs-operated psych hospital fixed most problems, state says

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A recent audit has put West Springs Hospital back in good standing with the state after a tumultuous year, and the psychiatric care provider has started to receive Medicaid payments again.

Mind Springs Health, West Springs’ operator, provides outpatient mental health and addiction treatment for most of western Colorado. On Monday, it announced that Colorado’s Behavioral Health Administration had ruled the hospital was in compliance with state regulations.

Mind Springs CEO John Sheehan said the BHA found 22 violations of its rules for patient care in October. When inspectors returned Thursday, they found two violations and were satisfied with a plan to correct them, he said.

He declined to specify the nature of the violations, and an inspection report wasn’t yet available on the state’s website.

“They were not critical patient safety issues,” he said. “The process that we’re employing is clearly working.”

The BHA didn’t have an immediate statement about the audit on Monday.

Rocky Mountain Health Plans, which administers Medicaid on the Western Slope, has resumed paying for new admissions to West Springs. The insurer halted payments in October, following a complaint filed by two former employees. The hospital continued admitting patients insured by Medicaid during that time, and RMHP is retroactively paying those claims, Sheehan said.

The last year has been turbulent for the organization. In January 2022, three state agencies announced that they were investigating Mind Springs. An audit they released in May didn’t find any evidence of fraud but noted a lack of transparency and said services didn’t match community needs.

About the same time the state audit came out, a group of former employees alleged fraud, saying they’d been asked to fill out paperwork as if they’d seen patients they hadn’t. Mind Springs denied the allegations, and state agencies haven’t said if they believe the claim has merit.

An inspection by the Colorado Department of Public Health and Environment in October faulted West Springs Hospital for never opening its psychiatric emergency room and for potential security risks when transferring patients between buildings on its campus.



A recent audit has put West Springs Hospital back in good standing with the state after a tumultuous year, and the psychiatric care provider has started to receive Medicaid payments again.

Mind Springs Health, West Springs’ operator, provides outpatient mental health and addiction treatment for most of western Colorado. On Monday, it announced that Colorado’s Behavioral Health Administration had ruled the hospital was in compliance with state regulations.

Mind Springs CEO John Sheehan said the BHA found 22 violations of its rules for patient care in October. When inspectors returned Thursday, they found two violations and were satisfied with a plan to correct them, he said.

He declined to specify the nature of the violations, and an inspection report wasn’t yet available on the state’s website.

“They were not critical patient safety issues,” he said. “The process that we’re employing is clearly working.”

The BHA didn’t have an immediate statement about the audit on Monday.

Rocky Mountain Health Plans, which administers Medicaid on the Western Slope, has resumed paying for new admissions to West Springs. The insurer halted payments in October, following a complaint filed by two former employees. The hospital continued admitting patients insured by Medicaid during that time, and RMHP is retroactively paying those claims, Sheehan said.

The last year has been turbulent for the organization. In January 2022, three state agencies announced that they were investigating Mind Springs. An audit they released in May didn’t find any evidence of fraud but noted a lack of transparency and said services didn’t match community needs.

About the same time the state audit came out, a group of former employees alleged fraud, saying they’d been asked to fill out paperwork as if they’d seen patients they hadn’t. Mind Springs denied the allegations, and state agencies haven’t said if they believe the claim has merit.

An inspection by the Colorado Department of Public Health and Environment in October faulted West Springs Hospital for never opening its psychiatric emergency room and for potential security risks when transferring patients between buildings on its campus.

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