NEWSRELEASE
For Release: April 10, 2002
Contact: John McDowell (202) 205-6941
SBA Number: 02-24 ADVO
john.mcdowell@sba.gov
Portable X-Ray And EKG Industry Hit Hard By CMS Omissions
WASHINGTON, D.C. – Centers for Medicare and Medicaid Services (CMS) has failed in its duties to consider the effects of proposed regulations on small entities and to explore alternative solutions to overly burdensome rules. Thomas M. Sullivan, Chief Counsel for Advocacy, delivered this message today to the U.S. House Committee on Small Business, at a hearing called to investigate CMS’ compliance with the Regulatory Flexibility Act (RFA).
The RFA requires federal agencies to determine whether a proposed rule will have a disproportionate effect on small entities. If a proposed rule has such an impact, the agencies are then required to explore less burdensome solutions.
"It is our goal that CMS more fully consider the consequences of their regulatory actions on small employers," Sullivan said. He continued, "CMS should do a better job of following administrative procedures that require public notice and comment." Of particular concern is CMS’ practice of bypassing public comment by declaring rules "final," a strategy that avoids the public comment requirements of the RFA.
Sullivan cited the CMS revisions to a Medicare fee schedule, which adversely affected the portable x-ray and EKG industry. Three times since 1998, the Office of Advocacy has filed comments with CMS concerning its rulemaking procedures in this case. CMS’ failure to address these issues continues to have a devastating impact on an industry dominated by small businesses.
While criticizing CMS, Sullivan also pointed out that his office is there to help. He appealed to CMS Administrator Thomas Scully to work cooperatively with the Office of Advocacy. "Advocacy’s independence calls for a critical review of agencies and how they approach small business. But when agencies need help on economic analysis, or developing less burdensome alternatives, we’re there to help," he said.
For more information, visit the Office of Advocacy website at http://www.sba.gov/advo.
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Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate, directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Issues are identified through economic research, policy analyses, and small business outreach. The Chief Counsel’s efforts are supported by offices in Washington, D.C., and by Regional Advocates. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call (202) 205-6533.