CMS finalizes plans to increase oversight of AOs

WASHINGTON – The Centers for Medicare & Medicaid (CMS) has published a rule finalizing enhanced oversight of accrediting organizations (AOs).

The agency says the rule, “Strengthening Oversight of AO and Preventing AO Conflicts of Interest,” ensures that the organizations responsible for the oversight of more than 9,000 health care providers and suppliers use Medicare standards, and creates greater consistency between State Survey Agencies (SAs) and AOs in their survey processes.

“The work accrediting organizations do is vital, but it also raises an age-old question: Who watches the watchmen? The answer is, we do,” said CMS Administrator Dr. Mehmet Oz. “With this new rule, CMS is advancing its commitment to upholding rigorous standards for accrediting organizations and ensuring the health and safety of American patients.”

The rule is designed to:

• Ensure AO accreditation standards continue to meet or exceed those of the Medicare program.
• Align accreditation and survey processes with CMS requirements.
• Confirm AO enforcement of CMS requirements.
• Reinforce that all accredited entities must deliver safe, effective care.
• Prevent AO conflicts of interest that may arise from related consulting services.

Additionally, the rule creates a new process for monitoring AO performance; establishes consistent standards, processes, and definitions; updates validation and performance systems; requires AO surveyors to take the same CMS training as SA surveyors; and reduces burden on SAs, AOs, and providers by streamlining the CMS AO validation process.

CMS released a notice of proposed rulemaking (NPRM) on Feb. 8, 2024, revising its AO requirements to bolster oversight and ensure providers meet health and safety standards. The agency addressed the public comments received on the NPRM and is publishing the final rule with comment period.     

• To view the final rule on the Federal Register, visit: https://www.federalregister.gov/. 
• To view the Fact Sheet, visit: https://www.cms.gov/newsroom/fact-sheets/strengthening-cms-oversight-accrediting-organizations.