As discussed in a prior post, the Hospital Price Transparency Rule at 45 C.F.R. § 180.10 et. seq. (the “Rule”), requires all hospitals to provide clear, accessible pricing information about the items and services they provide by publicizing (1) the prices for 300 of their most “shoppable services” or services that can be scheduled by a consumer in advance; and (2) total charges, payor-specific negotiated rates, and discounted cash prices for individuals paying out-of-pocket.

Many hospitals claim that it is more costly to comply with the Rule than pay the penalties associated with noncompliance and numerous independent studies have showed limited compliance to date. In an effort to enforce the Rule, CMS has now proposed to amend the regulations to impose higher penalties for failure to comply.

Specifically, CMS proposed to determine penalties amounts based on the number of beds a hospital has, and as shown here:

Number of Beds Penalty Applied Per Day Total Penalty Amount for full Calendar Year of Noncompliance
30 or less $300 per hospital $109,500 per hospital
31 – 550

$310 – $5,500 per hospital

(number of beds times $10)

$113,150 – $2,007,500 per hospital
More than 550 $5,500 per hospital $2,007,500 per hospital

The proposed penalties will go through a 60-day comment period starting August 4, and if implemented, would go into effect on January 1, 2022.