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Arizona State Hospital dodges loss of federal funding for 2nd time in as many years


PHOENIX — The federal government has decided not to pull funding from the Arizona State Hospital because of patient care and safety problems.

The decision announced Tuesday by the Arizona Department of Health Services marks the second time in as many years that the state has avoided losing federal funding at the hospital for the mentally ill.

Both cases involved inspections that found problems with staffing and patient security.

The federal Centers for Medicare and Medicaid Services found the Phoenix hospital wasn't complying with federal rules during a May inspection. A corrections plan was submitted in June and results of a July re-inspection were just received by the department.

The department put the hospital's top executive and a deputy director on leave in May. Both have since left state employment.

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