CMS: Proposed Reforms Will Save Nearly $1.1 Billion

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The Centers for Medicare and Medicaid Services (CMS) earlier this week announced that it is proposing two sets of regulatory reforms and is finalizing a third rule, a move it says will reduce “unnecessary, obsolete, or burdensome regulations” as well as save hospitals and health care providers nearly $1.1 billion each year and more than $5 billion over a period of five years. Under one set of regulatory reforms, hospitals that treat Medicare and Medicaid patients would see consolidated patient care plans and the elimination of outdated management requirements, such as a rule that all hospitals in a given health care system must be overseen by a single governing board. Institutions in rural locations would be permitted to outsource to other health care providers many tests they are now required to perform in-house. The second set of reforms addresses regulatory requirements for providers other than hospitals. It aims to eliminate duplicative, overlapping, outdated, and conflicting regulatory requirements for health care providers and suppliers, such as manufacturers of durable medical equipment. Meanwhile, the rule being finalized reduces the regulatory burden for ambulatory surgical centers (ASCs). CMS has widely publicized its intention to invest up to $1 billion to help drive these and myriad other changes through the Partnership for Patients initiative. To view the proposed and final rules, click here.