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CRM Cutting Healthcare Regulations in Attempt to Save $1B

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The move to eliminate a handful of regulations should save health care companies more than $1 billion next year according to the federal Medicare agency.

The Centers for Medicare and Medicaid Services announced Tuesday that it will strike down certain rules for hospitals in response to President Obama’s call for feds to find and eliminate unnecessary regulations.

According to CMS Administrator Don Berwick, the agency will remove several requirements including a rule that requires multiple hospitals in the same system to have its own individual governing board.

If hospitals were able to set their own management structure, CMS will have freed up funds that it can delegate to other priorities, said Berwick.

Rules requiring rural hospitals to perform certain test in-house will be eliminated as well allowing hospitals to outsource testing. CRM will also eliminate restrictions on work nurse practitioners and other non-physicians can do.

Berwick indicated these measures will save $1.1 billion next year and $5 billion over five years.

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