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CMS proposes financial incentives for hospitals to buy American supplies

Photo of busy hospital hallway with doctors and visitors wearing protective masks.
Photo: Stefano Guidi/Getty Images

The proposed rule change appears to be an acknowledgement that shifting supply chains to domestic manufacturers would significantly strain hospital operating margins.

The Centers for Medicare and Medicaid Services (CMS) is proposing to pay hospitals that prioritize buying personal protective equipment (PPE) and key emergency medications manufactured in the US. 

According to the proposal: “Overreliance on imports of PPE and essential medicines jeopardizes public health and the health and safety of