The final rule is expected to save $800 million annually through 2028, according to the Centers for Medicare & Medicaid Services.
The Centers for Medicare & Medicaid Services (CMS) announced a final rule Thursday morning that will save an estimated $8 billion in administrative healthcare costs by 2028, according to a press release.
The Omnibus Burden Reduction Final Rule is slated to remove certain Medicare regulations deemed "unnecessary, obsolete, or excessively burdensome" on hospitals and other healthcare organizations.
Additionally, the final rule is expected to reduce time spent on paperwork by 4.4 million hours, according to CMS, and save $800 million annually through 2028.
CMS Administrator Seema Verma said the new action by the agency is another example of President Donald Trump's plan to "cut the red tape," especially as it relates to healthcare costs.
"This final rule brings a common sense approach to reducing regulations and gives providers more time to care for their patients, while reducing administrative costs and improving health outcomes," CMS Administrator Seema Verma said in a statement.
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One aspect of the final rule gives providers greater flexibility as it relates to organ transplants, with the goal of reducing the amount of organs discarded while increasing the amount of organs available for transplantation.
The rule will also streamline regulations for Quality Assessment and Performance Improvement (QAPI) programs, allowing multiple hospitals in a health system to employ a unified entity.
The final two elements of the proposed rule allow X-ray orders to be transmitted in written form via telephone or electronic distribution, and a reduction in emergency preparedness requirements across care settings, though long-term care facilities have been excluded following the public comment period.
The final rule will be published in the Federal Register on September 30.
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Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.