News: Report finds hospitals spend roughly $39 million annually on regulatory burdens
Lately, it seems as if every CMS update includes the initiative to “reduce the regulatory burden.” Outside of CMS, the American Hospital Association (AHA) and other provider led groups also echo this cry, urging CMS regularly to take action.
In an effort to prove the extent of the burdens placed on providers, the AHA and Manatt Health analyzed requirements from CMS, the Office of Inspector General (OIG), Office for Civil Rights, and the Office of the National Coordinator for Health Information Technology, JustCoding reported.
The report found that providers spend approximately $39 million annually to comply with 629 requirements across the following nine domains:
- Billing and coverage verification requirements
- Conditions of Participation (CoP)
- Fraud and abuse
- Meaningful use of EHRs
- Post-acute care
- Privacy and security
- Program integrity
- Quality reporting
- Value-based payment models
Annually, a 161-bed hospital spends an estimated $7.6 million on administrative activities related to compliance with reviewed federal regulations, according to the AHA’s report. That equates to $1,200 in regulatory burdens per patient hospital admittance, JustCoding reported.
The report also examined the administrative aspects of quality reporting, with $709,000 reportedly spent annually by the average-sized community hospital. To meet meaningful use administrative requirements, the average-sized hospital spends $760,000 annually.
When it comes to resources, 59 full-time employees are dedicated to regulatory compliance issues in the average-sized community hospital, according to JustCoding.
The report also makes a number of suggestions to combat the regulatory burden placed on providers, including the following:
- Reducing redundancy across requirements
- Evaluating current measures for effectiveness
- Using only evidence-based measures
- Providing clear guidance accompanying new measures
Editor’s note: This article originally appeared in JustCoding. To read the entire report from the AHA, click here. To read about CMS’ efforts to reduce regulatory burden, click here.