CMS Proposes Expansion of 36-Month Rule to Include Hospice Providers

The Centers for Medicare & Medicaid Services (CMS) has put forth a proposed rule that signals an expansion in existing legislation pertaining to healthcare providers. In a policy brief made public on July 10, 2023, the CMS outlined plans to revise the Medicare Provider Enrollment requirements. This proposition would see the current Home Health Agency (HHA) 36-Month Rule being extended to encompass hospice providers. The said rule is projected to spur thoughtful conversation among legal professionals within corporate entities as they work to navigate these potential changes.

The Proposed Rule by CMS stipulates changes in a significant sector of healthcare service provision. Currently, the 36-Month Rule applies only to home health agencies. This legislation demands that agencies must be operational for a minimum of 36 months before being eligible to receive payment for Medicare services. This constraint was imposed to deter fraudulent activity and to maintain the promise of care delivery by agency providers.

By extending this rule to incorporate hospice providers as well, the CMS is striving to further enhance the efficacy of Medicare services. Hospice providers deliver essential palliative care to families and individuals grappling with terminal illness. By ensuring that such agencies are able to substantiate compliant practice for a considerable period before being qualified to participate in the Medicare program, the CMS endeavors to expand the cautionary safeguards currently placed upon home health agencies.

It is noteworthy that this projected expansion of the 36-Month Rule may have far-reaching implications for hospice service providers, and by extension, all entities operating within the healthcare landscape. While the CMS’s steps towards tightening regulations around Medicare service providers are commendable in its attempts to uphold service standards, the knock-on effects of this potential change warrant attention.

Legal professionals navigating this changing regulatory terrain will no doubt be tracking the CMS’s proposed rule’s progression closely – with an eye to both its immediate impacts and its potential ripple effects.