The Department of Health and Human Services (HHS) is taking new steps towards reducing unnecessary and obsolete regulations on U.S. hospitals and healthcare providers. HHS Secretary Kathleen Sebellius said the steps will save nearly $1.1 billion across the healthcare system in the first year and more than $5 billion over five years.
The new rules were issued Thursday by the Centers for Medicare & Medicaid Services (CMS). The first rule revises the Medicare Conditions of Participation (CoPs) for hospitals and critical access hospitals (CAHs). CMS estimates that annual savings to hospitals and CAHs will be approximately $940 million per year.
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The second rule, the Medicare Regulatory Reform rule, will produce savings of $200 million in the first year by promoting efficiency. This rule eliminates duplicative, overlapping and outdated regulatory requirements for healthcare providers.
“These changes cut burdensome red tape for hospitals and providers and give them the flexibility they need to improve patient care while lowering costs,” said CMS Acting Administrator Marilyn Tavenner in a press release. “These final rules incorporate input from hospitals, other healthcare providers, accreditation organizations, patient advocates, professional organizations, members of Congress and a host of others who are working to improve patient care.”
Overall, the final rules will:
• Increase flexibility for hospitals by allowing one governing body to oversee multiple hospitals in a single health system;
• Let CAHs partner with other providers so they can be more efficient and ensure the safe and timely delivery of care to their patients;
• Require that all eligible candidates, including advanced practice registered nurses and physician assistants, be reviewed by medical staff for potential appointment to the hospital medical staff and then be granted all of the privileges, rights and responsibilities accorded to appointed medical staff members; and
• Eliminate obsolete regulations, including outmoded infection control instructions for ambulatory surgical centers; outdated Medicaid qualification standards for physical and occupational therapists; and duplicative requirements for governing bodies of organ procurement organizations.
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To view the final rules, please visit www.ofr.gov/inspection.aspx.
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