CMS is considering paying hospitals that prioritize buying personal protective equipment and essential medications manufactured in the U.S., according to a proposed rule the agency published Jan. 29.
The payments would be designed to offset the higher cost of domestic medications and medical supplies compared to foreign manufactured products.
If approved, CMS would establish a “Secure American Medical Supplies” friendly designation for eligible hospitals, with a financial incentive tied to achieving the designation. The agency is seeking public input on the proposal’s reimbursement amount.
The proposed program would be similar to a payment system CMS implemented in 2023, which provides financial incentives to outpatient settings and ambulatory surgery centers with a “reliable domestic supply” of surgical N95 respirators.
As part of the public comment process, CMS is requesting recommendations for a “potential structural measure requiring hospitals to attest to meeting the domestic procurement minimum percentages for PPE and essential medicines.”
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