2026-22812Proposed RuleSignificantWallet

CMS Proposes Cutting Paperwork So Clinicians Can Focus on Care

Published Date: 11/10/2026

Proposed Rule

Summary

CMS is proposing to cut outdated and tricky rules in Medicare and Medicaid to help doctors and nurses spend more time caring for patients instead of paperwork. These changes aim to save money, boost flexibility, and make healthcare better and easier to manage. Comments on this plan are open until January 11, 2027, so everyone affected can share their thoughts!

Analyzed Economic Effects

10 provisions identified: 8 benefits, 2 costs, 0 mixed.

Rescind Medicaid institutional payment transparency reporting

CMS proposes to rescind State reporting requirements that required annual, facility-level disclosure of the percentage of Medicaid payments spent on direct care worker compensation and related staff compensation measures. CMS estimates average annual Federal savings of about $68,760 and State savings of about $68,760, and provider savings of about $30.4 million (providers) annually, with corresponding 10-year totals.

Hospitals: Remove OB-specific QAPI rules

CMS proposes to remove obstetrics (OB)-specific Quality Assessment and Performance Improvement (QAPI) requirements for hospitals that offer OB services. The CY 2025 rule had estimated compliance costs for those OB QAPI requirements of $187,985,440 over 10 years (about $18,798,544 annually) and 1,110,900 hours over 10 years; the proposal would eliminate those OB-specific obligations while hospitals must still follow the broader hospital QAPI rules.

Remove recent staff training mandates

CMS proposes to remove recently finalized staff training requirements for transfer protocols, emergency services readiness, and obstetrical (OB) care for hospitals and critical access hospitals (CAHs). The change would reduce the time and administrative burden on clinical staff and facility managers who would otherwise need to complete those new training obligations.

LTC: Cut ongoing respiratory reporting and COVID vaccine education

For Long Term Care (LTC) facilities, CMS proposes to remove the ongoing (weekly) acute respiratory illness data reporting requirement and to amend Public Health Emergency (PHE) reporting to use the PHE data elements; CMS also proposes to remove requirements to educate staff about COVID-19 vaccines, offer them, and document those actions. These changes reduce recurring reporting and education/documentation duties for LTC facilities.

CAH distance eligibility clarified and updated

CMS proposes to revise Critical Access Hospital (CAH) distance eligibility rules to clarify that determinations are based on proximity to hospitals providing acute inpatient care (including other CAHs) rather than to specialty hospitals. CMS also proposes to implement section 241 of the Consolidated Appropriations Act, 2026, which revises how the statutory distance requirement applies in specified circumstances.

LTC: Exemptions for room/bathroom standards on ownership changes

CMS proposes to exempt existing Long Term Care (LTC) facilities from certain room occupancy and bathroom facility standards when there is a change of ownership (CHOW) or a lapse in and restoration of certification. This would reduce compliance costs tied to facility physical environment requirements in those circumstances.

Remove Ombudsman notice for emergent resident transfers

CMS proposes to remove the requirement that Long Term Care facilities provide Ombudsman notice for resident transfers related to emergent care. This would reduce a notification step currently required when residents are transferred for emergency reasons.

Adopt 2024 Life Safety and Health Care Facility Codes

CMS proposes to adopt the National Fire Protection Association (NFPA) 2024 editions of the Life Safety Code (LSC) and Health Care Facilities Code (HCFC) for multiple provider types, with limited exceptions. CMS estimates this would produce an average annual cost of about $112,000 (approximately $1,120,000 over 10 years), offset by unquantified flexibility savings.

More flexibility for emergency/standby power systems

For hospitals, Critical Access Hospitals, Rural Emergency Hospitals, and certain Long Term Care facilities, CMS proposes to update requirements to allow additional sources of emergency power and to adopt the 2022 edition of the Standard for Emergency and Standby Power Systems (ESPS). CMS states these proposals would not result in costs but would provide increased flexibility.

Remove window and door requirements for patient sleeping areas

CMS proposes to remove the regulatory requirement for windows and doors in every patient sleeping area and certain windowsill height requirements for new construction across several provider types and defer to egress requirements in the Life Safety Code. For hospitals and CAHs, CMS proposes removing a 60-inch windowsill requirement for special nursing care areas in new occupancies.

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Key Dates

Published Date
Comments Due
11/10/2026
1/11/2027

Department and Agencies

Department
Independent Agency
Agency
Health and Human Services Department
Centers for Medicare & Medicaid Services
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