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  • Washington Highlights

    AAMC Comments on Strengthening Domestic Supply Chain of Medicines and Supplies

    Contacts

    Katherine Gaynor, Hospital Policy and Regulatory Analyst
    For Media Inquiries

    The AAMC submitted comments (PDF) on March 26 in response to Center for Medicare & Medicaid Services’ (CMS’) advance notice of rulemaking on strengthening the domestic supply chain of medicines and supplies. The CMS sought comments on how Medicare-participating hospitals can help shore up the production and use of American-made personal protective equipment (PPE) and essential medicines [refer to Washington Highlights, Jan. 30]. The AAMC’s comments support the agency’s goal of increasing the purchase of PPE and essential medicines from domestic sources under the right set of circumstances. Comments further highlighted considerations and challenges for the agency to weigh when designing potential policy solutions to increase the purchase of PPE and essential medicines from domestic sources, including working with both public and private stakeholders. 

    The AAMC further supported a payment adjustment that will cover the higher costs associated with purchasing domestically produced PPE and essential medicines but that it should not be tied to minimum thresholds or to a publicly reported designation. The association also asked that any payment adjustment not be made in a budget-neutral manner and should minimize reporting burden on hospitals. Lastly, the AAMC shared concerns regarding the use of a structural quality measure as an appropriate lever for this goal, as it is not clear how such a measure would serve as a quality indicator.