CMS Proposal Seeks to Cut Hospital Regulatory Burden

November 09, 2026

CMS’ new proposed rule aims to reduce regulatory burden, streamline requirements, and offer flexibility for hospitals and other providers, officials said in a statement.

The proposed rule—Cutting Administrative Requirements for Excellence in Patient Care—revises the Conditions of Participation, Conditions for Coverage, and Requirements for Participation for Medicare- and Medicaid-participating providers and suppliers.

The agency reviewed 21 provider and supply types “to identify opportunities to reduce administrative burden while maintaining patient safety and quality care.” CMS says the changes would save $320 million and return 3.26 million hours of staff time.

The agency noted the following changes by provider types:

For Hospitals

• Remove the staff training requirements for transfer protocols and emergency services readiness (both currently effective), and obstetric (OB) care (otherwise effective January 1, 2027).
• Remove the OB care-specific Quality Assessment and Performance Improvement (QAPI) requirements (otherwise effective January 1, 2027).
• Propose to establish new requirements regarding patients’ rights related to birth tissue collection by hospitals that provide OB care services, including standards for informed consent and policies and procedures to support families requesting their birth tissues for cultural, religious, or personal reasons.

For Critical Access Hospitals (CAH)

• Remove the staff training requirements related to emergency services readiness (currently effective) and OB care (otherwise effective January 1, 2027).
• Remove the OB care-specific requirements (otherwise effective January 1, 2027).
• Propose to establish new requirements regarding patients’ rights related to birth tissue collection by CAHs that provide OB care services, including standards for informed consent and policies and procedures to support families requesting their birth tissues for cultural, religious, or personal reasons.
• Revise regulations to clarify current CMS policy that CAH distance eligibility determinations are based on proximity to hospitals that provide acute care inpatient services or another CAH.
• Implement new statutory requirements to allow CAHs that meet certain qualifying criteria, as defined by the statute, to be exempt from the distance eligibility requirements.

Rural Emergency Hospitals (REH)

• Remove expired COVID-19 and seasonal influenza reporting requirements related to ongoing data reporting and staff vaccination.
• Remove REH data reporting requirements during a public health emergency.

A fact sheet and the proposed rule are available online.