A federal investigation has found UNC Hospitals at fault for refusing to care for a patient in March.
Hospital officials received a letter Monday afternoon from the Centers for Medicare and Medicaid Services' regional office in Atlanta citing UNC for failing "to provide transfer from another hospital in an emergency condition."
The investigation began in March when Claudine Lee went to a small hospital in Bladen County seeking emergency care for her son, whose finger had been partially detached.
The emergency staff was ill-equipped to handle the complicated reimplantation procedure, and a physician contacted UNC Hospitals.
When the physician called, UNC Hospitals officials redirected Lee to Duke University Hospitals because they said they also could not reattach the fingertip.
The delay in care ultimately resulted in the loss of the child's fingertip.
"The physician we were talking to didn't understand," said Karen McCall, vice president for communications for UNC Health Care. "She thought we were turning her down. We didn't communicate with her well."
The letter from CMS said hospital officials must reply within 10 days with a plan to rectify its inefficiencies, or it could lose its federal funding for both Medicare and Medicaid.
Though the threat of termination is real, it is rare, CMS officials say.