A proposed rule to reduce “burdensome” requirements for providers could be finalized next year, according to the Centers for Medicare & Medicaid Services. 

The agency discussed this action in its Fiscal Year 2020 Mission & Priority memo released last week. The annual document is based on regulatory changes, budget allocation adjustments and new initiatives. It is used to guide the work of CMS’ regional offices, state survey agencies and the Quality, Safety & Oversight Group. 

“The MPD discusses survey and certification functions as well as the Medicare funding allocation process for states, which directly impacts the work prioritization and planning for the required survey workload in the fiscal year the MPD is issued,” CMS wrote. 

Burden reduction

Among the actions CMS could take next year, according to the memo, are finalizing a rule that reduces “burdensome” requirements for providers. Under the proposed “Requirements for Long-Term Care Facilities: Regulatory Provisions to Promote Efficiency and Transparency” rule, requirements for participation that have been identified as unnecessary, obsolete or excessively burdensome to nursing homes would be removed. CMS believes the rule, if finalized, could save $616 million annually for providers. 

“Many of the proposed provisions would simplify and/or streamline the Medicare health and safety standards long-term care facilities must meet in order to serve their residents,” the agency wrote. 

“Importantly, in identifying opportunities for reducing burden, CMS would maintain resident health and safety standards. Once finalized, CMS will provide guidance to state agencies for surveying for compliance with the new regulations.” 

Guidance on arbitration agreements

CMS also plans to issue guidance for state survey agencies regarding arbitration agreements, the memo noted. The agency, in November, announced revisions to the final rule on the use of arbitration agreements by long-term care facilities. The revisions allow binding arbitration agreements but prohibit nursing homes from requiring residents to sign them as a condition for receiving care. 

Providers are required to inform residents or their representatives that they aren’t required to sign binding arbitration agreements.