CMS seeks stakeholder input to bolster American-made PPE, meds

The Centers for Medicare & Medicaid Services (CMS) is seeking public input on “strengthening the domestic supply chain for PPE and essential medicines.”

The federal agency last week issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public feedback by March 1 on “potential approaches to strengthen the American-made supply chain” for the products while reducing reliance on imports.

“The ANPRM seeks comments on new avenues the agency may consider to promote domestic purchasing by hospitals that participate in the Medicare program, including the potential creation of a new ‘Secure American Medical Supplies’ designation for hospitals committed to American-made purchasing, and streamlined payment approaches to help offset the resource costs of domestic procurement,” said a CMS press release.

“We want to hear from hospitals, manufacturers, suppliers, and the public on practical ways Medicare can support a stronger, more reliable domestic supply chain,” said CMS Deputy Administrator and Director of the Center for Medicare Chris Klomp. “Whether through targeted designations, payment structures, or other approaches, our goal is to develop options that improve preparedness while giving providers workable, flexible policies that strengthen patient care.”

CMS said the goal is to “advance national security, strengthen domestic manufacturing capacity, improve care quality, and support a more resilient healthcare system.”

Fierce Healthcare reports that CMS seeks input from stakeholders on how such a designation “could facilitate the creation of new, streamlined payment policies to support hospitals in their efforts,” and that it could add a “structural quality measure to the Hospital Inpatient Quality Reporting Program that would require hospitals to show they’ve met minimum procurement percentages” for PPE and essential medicines. “The potential moves are a recognition that shifting supply chains to domestic manufacturers would meaningfully strain hospital operating margins,” writes Fierce Healthcare, whose full report is available here.

Read the proposed rule and submit comments here.