The Centers for Medicare and Medicaid Services (CMS) released draft guidance on May 3 regarding hospitals co-locating with other hospitals and with nonhospital health care entities. Though the term is largely self-explanatory, co-location involves the shared use of personnel, equipment and services by two separate health care entities located in the same space. Co-location can involve a level of integration that shortens not only the physical distance between entities, but the organizational and logistical distance between their operations. Many argue that this can increase access to care by, among other things, increasing convenience for the patients and simplifying coordination between the co-located health care entities.

In its statement accompanying the draft guidance, CMS stated that it appreciates its role in overseeing the quality of hospital care in the United States, but it also recognizes that overly strict rules regarding co-location (which is how many see CMS’s previous positions on co-location) result in a lack of flexibility. The draft guidance, therefore, aims to strike a balance between protecting the safety and quality of care for patients and allowing flexibility in the partnerships between hospitals co-located with other hospitals and healthcare entities.

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