In 2021, CMS issued requirements for hospitals within the United States to establish, update, and make public a list of standard charges for items and services provided by the hospital. The Price Transparency Rule was intended to promote public access to charges while assisting the public in making more informed decisions about their health care. The possible penalty for a hospital’s non-adherence can range from $300 to upwards of $5,500 per day, based on the hospital’s size.
On June 7, almost a year and a half into the implementation of the rule, CMS imposed its first civil monetary penalties on two hospitals. Both hospitals received a notice of noncompliance and were asked in 2021 to provide CMS with a corrective action plan. CMS reports that neither hospital submitted a corrective action plan. The hospitals have 60 days to pay in full and may appeal the determination by requesting a hearing with an Administrative Law Judge. This action by CMS could mean that other hospitals remaining noncompliant may face impending fines.