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A Kansas psychiatric hospital that lost its federal certification in 2015 — causing the state to lose $1 million a month in federal funding — passed an initial inspection this week, a first step toward getting recertified. Osawatomie State Hospital completed a successful inspection on Tuesday, said the Kansas Department for Aging and Disability Services. (Shorman, 8/16)

Kansas officials have cleared an initial hurdle in their effort to regain federal certification for Osawatomie State Hospital. Problems that federal inspectors cited in May have been fixed, making the state’s largest mental health hospital eligible for a full recertification inspection, according to the Kansas Department for Aging and Disability Services. That inspection must take place within the next 120 days, according to KDADS Secretary Tim Keck. (McLean, 8/16)

The beleaguered Oregon Health Authority, under fire since the release of internal records revealed its plan to smear a health care provider it regulates, got more bad news Wednesday. Willamette Valley Behavioral Health has notified the state it will be filing a lawsuit in connection with the agency's rejection of a proposed 100-bed psychiatric hospital in Wilsonville. Jason Conger, a former state legislator now practicing law in Bend and representing Willamette, accused the agency of acting on behalf of competing mental health treatment providers. (Manning, 8/16)

Nearly a week after 19 workers at Exeter Hospital suddenly felt dizzy and nauseous inside the operating department, officials say the cause of the illness remains a mystery. The hospital said it’s conducting an internal investigation in hopes of finding the source, but so far no one has been able to pinpoint the culprit. (Schreiber, 8/16)

Two of the nation’s largest cancer-care providers are accused of engaging in an illegal “gentleman’s agreement” to divide up treatment services in Florida. The allegation against Florida Cancer Specialists & Research Institute and 21st Century Oncology lists multiple claims — gender discrimination, fraudulent Medicare billing and unsafe medical practices — against the companies in a 50-page federal whistleblower lawsuit filed last year that had, until recently, been under seal and out of the public eye. (Gluck, 8/16)