As part of new proposed regulations introduced on Tuesday by Health & Human Services (HHS), multi-hospital systems would no longer need multiple governing bodies--a departure from each individual hospital having its own board--and instead are allowed a single governing body under updated Conditions of Participation (CoP). In addition to easing participation in Medicare and Medicaid and reducing hospital management burden, the changes are expected to save at least $900 million in the first year alone.
"Based on our experience with hospitals and the input provided by stakeholders through anecdotal evidence, we believe that hospitals in a multi-hospital system (defined here as those having more than one CMS Certification Number (CCN)) can be effectively governed by a single governing body," the proposed rule states. "Thus, we propose to revise and clarify the governing body requirement to reflect current hospital organizational structure whereby multi-hospital systems have integrated their governing body functions to oversee care in a more efficient and effective manner."
For many hospitals, it's a welcome relief.
"We applaud CMS for addressing concerns heard from America's hospitals," AHA President and CEO Rich Umbdenstock said in a statement yesterday. "The proposed new conditions of participation better recognize how care is delivered today."
HHS also proposed two other major changes, eliminating duplicative and outdated requirements, as well as revised health and safety standards for ambulatory surgical centers.
"The rules would also remove many outdated billing practices, saving physicians time and money," HHS Secretary Kathleen Sebelius told reporters, according to Reuters.
The combined changes are expected to save hospitals and healthcare providers $1.1 billion annually and more than $5 billion in five years, reports Kaiser Health News.
For more information:
- here's the CMS rule (.pdf)
- read the Kaiser Health News article
- check out the FierceHealthFinance article
- read the AHA statement (.pdf)
- read the Reuters article
Related Articles:
Hospital management jobs at risk during reform uncertainty
Increased stress causing hospital CIOs to rethink their job situations
Study: Community benefit oversight by boards inconsistent