CMS Begins Issuing Warning Notices to Hospitals for Noncompliance with Hospital Price Transparency Rule

Posted 5/04/21 (Tue)

CMS verified for the AHA that the agency has begun proactive audits of hospital websites and a review of complaints submitted through the CMS Hospital Price Transparency website.

The audits began with large acute care hospitals and have now expanded to include a random sample of all acute care hospitals. The first set of warning letters, listing specific areas of noncompliance identified through the review process, were issued the week of April 19. CMS intends to send warning letters on a rolling basis as the agency identifies hospitals that are out of compliance with the requirements. CMS will not make the identities of the hospitals that have received warning letters public. However, CMS will identify on the agency’s website hospitals that remain out of compliance and receive a civil monetary penalty.

Upon receiving a noncompliance letter, hospitals will have 90 days to address the identified issue(s) and become compliant. CMS will re-review the hospital for compliance at the end of the 90 days, or sooner if CMS learns the issues have been addressed. Depending on the findings, the hospital’s case may be closed out, or the hospital may be issued a second warning letter or a request for a corrective action plan. Ultimately, hospitals that are asked to submit a corrective action plan and do not submit it or do not follow it may be issued a civil monetary penalty of up to $300 per day.