CMS Proposes New CARE Rule to Reduce Regulations

The U.S. Centers for Medicare & Medicaid Services (CMS) has proposed the new Cutting Administrative Requirements for Excellence in Patient Care (CARE) rule. The rule introduces changes designed to reduce healthcare costs and unnecessary regulatory burden.

Provisions in the CARE rule are also aimed at increasing payment transparency and improving healthcare providers’ ability to innovate, according to CMS.

Through the CARE rule, the agency estimated roughly $320 million in potential cost savings, along with a reduction of more than 3.26 million hours in administrative burden.

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“The agency identified obsolete, outdated and excessively burdensome regulations that CMS proposes to eliminate or reform to enhance the effectiveness of facility operations and reduce unnecessary burden or other costs, with a particular focus on freeing up resources that healthcare providers could otherwise use to improve patient health and safety,” CMS said in an announcement.

The agency designed the CARE rule to streamline existing Medicare and Medicaid regulations and revise Conditions of Participation, Conditions of Payment (CoPs) and Conditions for Coverage (CfCs). CMS proposed rescinding certain Medicaid payment transparency reporting requirements for state and institutional healthcare providers that often create administrative burden.

The rule included changes for hospice providers. Through CARE, CMS proposed to remove the requirement stipulating that inpatient patient care delivery areas must have access to natural light and ventilation through exterior windows and doors. This requirement applies to hospice inpatient care facilities, as well as hospitals, critical access hospitals and intermediate and long-term care facilities.  

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The window and door requirement was established in 2016. The requirement was later not included as an essential life safety feature. In a statement, CMS indicated that the revision was driven by providers’ concerns related to their ability to comply with the requirement.

“We believe it continues to impose a lower burden on providers than what was required in the outside window and door requirements,” the agency said in the statement.

Another change in the CARE rule proposed to remove a requirement stipulating that inpatient hospice facilities must have an outside door or window for all patient rooms. The requirement mandates that buildings constructed after July 5, 2016, must have 36-inch windowsills. Through the rule, hospices would continue to be required to provide a “home-like atmosphere” in accordance with regulatory requirements.

The CARE rule included several provisions for hospices that provide inpatient care. One revision that CMS proposed was a technical change to update corridor-latching requirements in inpatient care settings. The agency clarified that use of roller latches on corridor doors is prohibited, except for doors to auxiliary spaces that are not hazardous according to the Life Safety Code. CMS expanded this prohibition to include inadequately latching hardware on any device, not just roller latches.

CMS is seeking comments on the proposed CARE rule by Jan. 5, 2027.