Universal Health Services: Laurel Ridge Treatment Center CEO Steps Down as Facility Loses Medicaid Funding Due to Patient Deaths, Safety Concerns

May 5, 2026

The CEO of Laurel Ridge Treatment Center has been removed just as the federal government cut off the facility’s access to Medicare and Medicaid funding, a move triggered by serious regulatory violations tied to patient safety. The hospital’s chief financial officer has stepped in as acting CEO while officials say their priority is restoring compliance and regaining certification.

Laurel Ridge, located in the San Antonio area, is owned by Universal Health Services.

Federal regulators had warned the hospital earlier in April that it would lose funding effective April 30, citing conditions that posed “immediate jeopardy” to patients. The decision follows reports of multiple patient deaths in 2025 and broader concerns about staffing and care practices. State officials say they are working with partners to ensure patients are safely transferred or discharged as the funding cutoff takes effect.

The loss of federal funding could have sweeping consequences, including the potential shutdown of inpatient services and large-scale layoffs. Hospital leaders had sought to block the termination in court, warning it would be “catastrophic,” but a judge denied the request. Meanwhile, regulators continue to monitor the situation to ensure continuity of care and compliance with safety standards.

(Source: TPR (dot) org, April 30, 2026)