HHS Crackdown on Data Blocking, Grants Policy Changes, and Reorganization Priorities

This week, the biggest headline out of the Department of Health and Human Services is the agency’s sweeping crackdown on health data blocking. According to HHS, enforcement of information blocking regulations is now a top priority, reflecting a serious commitment to ensuring that Americans, their health care providers, and partners have prompt, easy access to electronic health records. The department signals it will, for the first time, pursue substantial penalties for organizations that interfere with legally permitted health information exchange—a move that could reshape how hospitals, health IT developers, and networks manage data. The OIG reports over 1,300 potential violations since the department’s complaint portal opened and says, “Blocking patient access is simply no longer acceptable in the U.S. health system.” Also this week, HHS unveiled finalized updates to its Grants Policy Statement— the first major overhaul in years. Starting October 1st, the department will require grantees to get prior approval on any budget shifts exceeding 10% of their total project award, a much tighter guardrail than the previous 25%. There are new civil rights certification requirements, an explicit right for HHS to terminate grants for its own convenience, and stricter timelines for requesting program extensions. Feldesman’s policy experts suggest these moves will make HHS grant oversight more predictable and equitable but will call for greater diligence from grantees. On the organizational front, April saw HHS begin its most expansive reorganization in decades. By consolidating 28 divisions into just 15 and introducing a new Administration for a Healthy America, HHS aims to streamline operations around core functions like policy, IT, and procurement. A new Assistant Secretary for Enforcement will intensify oversight of appeals, Medicare hearings, and civil rights compliance. To enable this, HHS has reduced its full-time workforce from 82,000 to 62,000, with the CDC, FDA, NIH, and CMS absorbing the deepest cuts. The agency assures the public that no essential services—including Medicare, Medicaid, or drug safety reviews—are affected, and that “no additional cuts are currently planned.” For Americans, this data-sharing push may improve care coordination—making it less likely your test results or treatment records get lost between clinics. Businesses that manage health IT or depend on federal grants will need to prepare for stricter compliance and documentation standards. State and local governments relying on HHS grants or partnerships might see reporting requirements change. Internationally, these enforcement priorities could bolster confidence in U.S. health IT standards and data privacy regimes. If you want to weigh in on these developments or have experienced issues around health data access, HHS encourages the public to use their information blocking complaint portal. Industry experts will lead a webinar on the Grants Policy changes September 29th a This content was created in partnership and with the help of Artificial Intelligence AI.