HHS Finalizes New Rules to Cut Regulations for Hospitals and Health Care 
Providers, Savings More Than $5 Billion
Changes Will Reduce Costs and Allow More Focus on Medical Care

On May 9, HHS Secretary Kathleen Sebelius announced significant steps to reduce 
unnecessary, obsolete, or burdensome regulations on American hospitals and 
health care providers. These steps will help achieve the key goal of President 
Obama's regulatory reform initiative to reduce unnecessary burdens on business 
and save nearly $1.1 billion across the health care system in the first year 
and more than $5 billion over five years.

The new rules were issued on May 9 by 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.

The second, 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duplicative, overlapping, and outdated regulatory requirements for health care 
providers.

Among other changes, 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instructions for ambulatory surgical centers; outdated Medicaid qualification 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.

View the Medicare CoPs final 
rule<http://www.gpo.gov/fdsys/pkg/FR-2012-05-16/pdf/2012-11548.pdf> and the 
Medicare Regulatory Reform final 
rule<http://www.gpo.gov/fdsys/pkg/FR-2012-05-16/pdf/2012-11543.pdf>. For 
additional information on the Hospital and other CoPs, visit the Conditions for 
Coverage (CfCs) & Conditions of Participations (CoPs) 
website<http://www.cms.gov/Regulations-and-Guidance/Legislation/CFCsAndCoPs/index.html?redirect=/CFCsAndCoPs/01_Overview.asp>.

Full text of this excerpted CMS press 
release<http://www.cms.gov/apps/media/press/release.asp?Counter=4362&intNumPerPage=10&checkDate=&checkKey=&srchType=1&numDays=3500&srchOpt=0&srchData=&keywordType=All&chkNewsType=1%2C+2%2C+3%2C+4%2C+5&intPage=&showAll=&pYear=&year=&desc=&cboOrder=date>
 (issued May 9).

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