President Trump today issued an executive order aimed at reducing regulation and controlling regulatory costs. “In addition to the management of the direct expenditure of taxpayer dollars through the budgeting process, it is essential to manage the costs associated with the governmental imposition of private expenditures required to comply with federal regulations,” the order states. “Toward that end, it is important that for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.” Noting that the regulatory burden imposed on hospitals and health systems is “substantial and unsustainable,” AHA President and CEO Rick Pollack called the order a “good first step” and said the association will work with the administration on reducing burden. “We are encouraged by the executive order signed by President Trump today that will help reduce red tape,” he said. “Reducing the administrative complexity of health care would allow providers to spend more time on patients, not paperwork. In the past year alone, the federal government added 23,531 pages to the stack of existing regulations affecting hospitals and health systems. Excessive red tape not only stands as a barrier to care but as a key driver of cost. Reducing the burden would not only provide relief, but would also provide an opportunity to make care more patient-centered than ever before.” The AHA last month sent a letter outlining actions the administration could take immediately to reduce the regulatory burden on hospitals and health systems.

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