CMS Proposes Changes That Eliminate Red Tape




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In an effort to eliminate antiquated policies and procedures that are deterrent to a hospital’s success, the Centers for Medicare & Medicaid Services recently proposed rule changes that will save providers billions of dollars and allow hospitals and healthcare providers to operate with greater transparency and efficiency. 

As part of President Obama’s declaration that all federal agencies need to reexamine their guidelines for redundancy and ineffectiveness, the CMS outlined a set of three regulatory reforms, all focused on lessening regulatory control:

  • Updating of rules for hospitals that treat Medicare and Medicaid patients
  • Identifying and eliminating regulatory measures that are unnecessary and archaic for non-hospital facilities
  • Eliminating unnecessary Medicare and Medicaid health and safety standards for ambulatory surgery centers (ASCs)

In total, it is estimated that the potential modifications would save hospitals and healthcare providers $1.1 billion each year and over $5 billion in a 5 year period.

Reform that can trim unnecessary expenses and eliminate red-tape has to be seen as a positive, says John Ansorge, Somnia's chief financial officer.

“It is the fundamental goal of every medical facility to provide the best possible, most cost-efficient care,” says Ansorge. “This initiative by the CMS will help achieve that goal and better prepare facilities in adapting to the provision set forth in last year’s Affordable Care Act.”

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