CMS Issues Notice of Proposed Rulemaking Regarding Accrediting Organizations

On February 15, 2024, the Centers for Medicare & Medicaid Services issued a notice of proposed rule making to increase oversight of accrediting organizations (“AOs”). AOs survey over 9,000 accredited health care providers and suppliers in the Medicare/Medicaid program for compliance with health and safety requirements. CMS has identified concerns related to AO performance such as inconsistent survey results due to differing AO standards or practices, possible conflicts of interest resulting from AOs providing fee-based consulting services to providers and suppliers they accredit, and providers and suppliers that have been terminated from Medicare/Medicaid but retaining accreditation.

Proposed changes include holding AOs accountable to the same standards as state survey agencies, limiting fee-based consulting services AOs provide to health care facilities they accredit, and requiring AOs with poor performance to submit a publicly reported correction plan to CMS. The changes outlined in the proposed rule affects all AOs except those that accredit clinical laboratories under CLIA and non-certified suppliers. Comments to the proposed rule must be received by CMS no later than 5:00 p.m. on April 15, 2024.