January 30, 2026- In an effort to strengthen resiliency within the U.S. healthcare supply chain and support domestic manufacturing, the Centers for Medicare & Medicaid Services (CMS) announced the agency is looking at ways to incentivize hospitals to purchase supplies and medications that are manufactured in the U.S. Under the proposal, CMS would establish a “Secure American Medical Supplies” designation for hospitals that meet minimum procurement thresholds for U.S.-produced medical supplies, according to an advance notice of proposed rulemaking (ANPRM). CMS is seeking public input on the proposal’s reimbursement amount.
The proposal is similar to a payment approach CMS introduced in 2023, which offers financial incentives to outpatient facilities and ambulatory surgery centers that maintain a reliable domestic supply of surgical N95 respirators.
CMS also indicated it may introduce a new structural quality measure within the Hospital Inpatient Quality Reporting Program that would require hospitals to demonstrate they have met minimum procurement thresholds for U.S.-made personal protective equipment (PPE) and essential medications.
Continue Reading from CMS.