rcm glossary

Proposed rule

Proposed rule' is a preliminary regulation or policy suggested by a governing body, subject to public comment and revision before becoming a final rule.

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What is a Proposed Rule?

A proposed rule, in the context of healthcare revenue cycle management (RCM), refers to a formal document issued by a government agency, such as the Centers for Medicare and Medicaid Services (CMS), that outlines potential changes to existing regulations or introduces new regulations. It serves as a notice to the public and stakeholders about the agency's intentions to modify or establish rules governing various aspects of healthcare reimbursement, coding, billing, and compliance.

The proposed rule is a crucial step in the rulemaking process, allowing interested parties to review and provide feedback on the proposed changes before they are finalized and implemented. It provides an opportunity for public input, ensuring that the final rule reflects the concerns and perspectives of those affected by the regulations.

Key Features of a Proposed Rule

To better understand the concept of a proposed rule, let's explore its key features:

1. Regulatory Changes:

A proposed rule outlines the specific changes or additions that the government agency intends to make to existing regulations or the creation of new regulations. These changes can cover a wide range of topics, including reimbursement rates, coding guidelines, documentation requirements, compliance standards, and more.

2. Public Notice:

The proposed rule is published in the Federal Register, a daily publication of the U.S. government, to provide public notice of the agency's intentions. This allows interested parties, such as healthcare providers, payers, industry associations, and the general public, to become aware of the proposed changes and participate in the rulemaking process.

3. Comment Period:

After the publication of a proposed rule, a comment period is typically provided, during which stakeholders can submit their feedback, concerns, and suggestions regarding the proposed changes. This period is usually open for a specified duration, often ranging from 30 to 60 days, to allow sufficient time for interested parties to review the proposed rule and prepare their comments.

4. Stakeholder Engagement:

The proposed rule encourages active engagement and participation from stakeholders, as their input is valuable in shaping the final rule. Stakeholders can submit written comments, attend public hearings or meetings, and engage in discussions with the agency to express their opinions, provide evidence, and propose alternative approaches to the proposed changes.

5. Regulatory Impact Analysis:

Along with the proposed rule, the government agency may also provide a regulatory impact analysis, which assesses the potential effects of the proposed changes on various stakeholders, including healthcare providers, payers, patients, and the overall healthcare system. This analysis helps in understanding the potential benefits, costs, and unintended consequences of the proposed rule.

Difference between Proposed Rule, Final Rule, and Interim Final Rule

It is essential to differentiate between a proposed rule, a final rule, and an interim final rule, as they represent different stages in the rulemaking process:

1. Proposed Rule:

As discussed earlier, a proposed rule is the initial stage of the rulemaking process. It outlines the agency's proposed changes to existing regulations or introduces new regulations. During the comment period, stakeholders can provide feedback, which the agency considers while finalizing the rule.

2. Final Rule:

After the comment period ends, the agency reviews and analyzes the comments received. Based on this feedback, the agency may make revisions to the proposed rule, taking into account the concerns and suggestions of stakeholders. The final rule is then published, incorporating the changes made in response to the comments received. The final rule represents the official regulations that will be enforced.

3. Interim Final Rule:

In certain situations, when immediate implementation of a rule is necessary, the agency may issue an interim final rule. Unlike the proposed rule, an interim final rule takes effect immediately upon publication, without a prior comment period. However, the agency may still allow a comment period after the rule is implemented, considering the public's input for potential revisions in subsequent versions of the rule.

Examples of Proposed Rules in Healthcare RCM

To provide a clearer understanding, here are a few examples of proposed rules in the field of healthcare revenue cycle management

1. Proposed Rule on Reimbursement Rates:

CMS may issue a proposed rule that suggests changes to the reimbursement rates for specific healthcare services, such as physician visits or diagnostic tests. The proposed rule may outline the methodology used to calculate the reimbursement rates, factors considered, and any adjustments based on regional or national factors.

2. Proposed Rule on Coding Guidelines:

CMS may propose changes to the coding guidelines used for medical billing, such as the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) or Current Procedural Terminology (CPT) codes. The proposed rule may introduce new codes, modify existing codes, or provide clarifications on the appropriate use of codes for specific medical conditions or procedures.

3. Proposed Rule on Documentation Requirements:

CMS may propose changes to the documentation requirements for healthcare providers to support claims for reimbursement. The proposed rule may specify the level of detail required in medical records, the use of electronic health records (EHRs), and the documentation standards for specific services or procedures.

4. Proposed Rule on Compliance Standards:

Government agencies, such as the Office of Inspector General (OIG), may issue proposed rules related to compliance standards and regulations. These proposed rules may outline changes to anti-fraud and abuse regulations, billing and coding compliance requirements, and guidelines for preventing healthcare fraud and abuse.


In summary, a proposed rule is a formal document issued by a government agency that outlines potential changes to existing regulations or introduces new regulations in the field of healthcare revenue cycle management. It serves as a notice to the public and stakeholders, providing an opportunity for review, feedback, and engagement in the rulemaking process. Understanding proposed rules is crucial for healthcare providers, payers, and other stakeholders to stay informed about potential changes that may impact their revenue cycle operations and compliance efforts.

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