Protect Patients Act - Amends title XVIII (Medicare) of the Social Security Act to subject to civil monetary penalties any psychiatric hospitals or psychiatric units determined by the Secretary of Health and Human Services (HHS) not to have in place a discharge planning process meeting certain requirements.

Authorizes the Secretary to: (1) enter into a system improvement agreement, meeting specified criteria,with a psychiatric hospital or a psychiatric unit that has been determined on multiple occasions not to have such a discharge planning process in place; and (2) appoint temporary management to oversee its operation in the event that the hospital or unit still fails to have a sufficient discharge planning process in place 45 days after entering into such an agreement.