JCAHO was a nonprofit organization that Memorial, like most hospitals in the United States, hired to accredit it every third year. A “Gold Seal of Approval” from the organization paved the way for state licensure and Medicare and Medicaid reimbursement for treating patients. The Gold Seal was not a rarefied designation. Some 99 percent of hospitals achieved it, and details of their inspection deficiencies were hidden from public view. Most of JCAHO’s revenues came from fees paid by the very hospitals it accredited. In some cases, its survey teams missed serious problems at hospitals that law
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