REDUCED MEDICARE REGULATORY BURDENS ON HEALTH CARE PROVIDERS WILL SAVE OVER $5 BILLION
Press Release- May 10, 2012, the Centers for Medicare & Medicaid Services (CMS) finalized two rules today to reduce unnecessary, obsolete, and/or burdensome regulations on American hospitals and health care providers. These rules will help achieve the key goal of President Obama’s regulatory reform initiative to reduce unnecessary burdens on business and save approximately $1.1 billion across the health care system in the first year and more than $5 billion over five years.
Wow, the Health and Human Services has discovered that reducing regulations can save $5 billion. By executive order the President has targeted two areas, Medicare Conditions of Participation (CoPs) for hospitals and critical access hospitals (CAHs). The change in CoPs is estmated to save $900 million in the first year alone while the targeted changes to CAHs is estimated at $200 million in the first year. This is a truly positive step in freeing up market resources to provide better health care services.