Roskam hosts roundtable for healthcare providers to discuss regulatory relief

Apr 13, 2018
Press Release

Washington, D.C. — As Chairman of the Ways and Means Subcommittee on Health, Chairman Peter Roskam (IL-06) hosted a second roundtable in a series of discussions around regulatory relief and reform. As part of the Medicare Red Tape Relief Project, Chairman Roskam invited hospitals from around the country to join him and the members of the Health subcommittee to discuss how current Medicare regulations are harming their ability to provide greater care for their patients.

In his opening statement, Chairman Roskam acknowledged the negative impact burdensome regulations have on patient care saying, “In recent years, clinicians (including doctors, nurses and other caregivers) find themselves spending more and more minutes and hours each day on documentation and regulatory compliance, taking them away from patient care.”

Chief Medical Officer for Advocate Aurora Health, Dr. Lee Sacks, was among the providers participating in the roundtable discussion and was optimistic about the project: “As we move away from a fee-for-service system and towards value, providers are more accountable than ever for financial and patient outcomes across the entire spectrum of care. I want to commend Chairman Roskam for taking initiative to hear directly from providers on ways to reduce regulatory burden so that together, we can achieve meaningful change to benefit Medicare beneficiaries.”

The Committee received nearly 500 submissions to the Red Tape Relief Project, with 312 unique organizations submitting over 1300 documents. Hospitals face tremendous burden and an average-sized community hospital spends nearly $7.6 billion annually on administrative activities to support compliance. This roundtable gave members and stakeholders the opportunity to dive into the core issues and Chairman Roskam noted his desire to continue to work towards regulatory relief and real reform.

“We’ve reached the threshold where the regulatory burdens placed on healthcare providers are now coming at the expense of patient care and we can’t allow this to continue. The Health Subcommittee is focused on finding solutions that balances the need for regulations with the cost and quality of care that’s being provided. As we continue these meetings, I believe we’ll be able to find that balance,” said Chairman Roskam.

 

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BACKGROUND:

  • The Centers for Medicare and Medicaid Services (CMS) publishes nearly 11,000 pages of regulation every year. 
  • One hospital survey found that hospitals must comply with 341 hospital-related requirements.
  • An average-sized community hospital spends nearly $7.6 million annually on administrative activities to support compliance.
  • Regulatory burden costs $1,200 every time a patient is admitted to the hospital.
  • An average-sized hospital dedicates 59 full time employees to regulatory compliance, over one quarter of which are doctors and nurses who could otherwise be caring for patients. 
  • According to another study published in Health Affairs, administrative costs account for 25 percent of annual hospital spending in the United States, which amounts to more than $200 billion. That puts the United States as having the highest administrative costs when comparing eight major western nations.
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