Hospital operator Universal Health Services Inc. said Monday it has reached an agreement with federal regulators to abate a termination of the Medicare provider agreement for its Southwest Healthcare System subsidiary that was scheduled for June 1.
Universal Health, which is based in King of Prussia, Pa., said the one-year agreement with the Centers for Medicare and Medicaid Services requires Southwest to have independent experts develop implementation plans for it to meet Medicare participation conditions.
Southwest operates Rancho Springs Medical Center and Inland Valley Regional Medical Center in Riverside County, Calif.
Universal Health also intends to appeal a California Department of Public Health plan to revoke Southwest's hospital license. The company said California regulators have indicated a willingness to rescind the revocation should Southwest "demonstrate its ability to meet all state licensing requirements."
Universal Health shares climbed $2.77, or 7 percent, to $41.81 in late morning trading Monday.