CMS: New Rules Could Save Millions For Hospitals

New rules for hospitals and other healthcare providers could save more than $1 billion annually.
by | October 19, 2011

New rules proposed by the Centers for Medicare and Medicaid Services would eliminate "unnecessary, obsolete and burdensome regulations," potentially saving hospitals and other healthcare providers up to $1.1 billion annually, according to a U.S. Department of Health and Human Services press release.

The refined regulations relate to rules for hospitals that treat Medicare and Medicaid patients. They would improve transparency, according to the department, and ease the regulatory burden for hospitals. For example, one proposal would consolidate patient care plans and eliminate outdated requirements for hospital management. That change could save up to $900 million for hospitals.

"President Obama has been clear: it's time to cut the red tape," said HHS Secretary Kathleen Sebelius said in a statement. "Our new proposals eliminate unnecessary and obsolete standards and free up resources so hospitals and doctors can focus on treating patients."

Two other sets of reforms would address the regulatory requirements for healthcare providers other than hospitals and for ambulatory surgical centers, which could save a combined $250 million annually, according to the HHS department.


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