The Centers for Medicare & Medicaid Services (CMS) has finalized the Fiscal Year (FY) 2027 Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital Prospective Payment System (LTCH PPS) rule, updating Medicare payment rates, quality reporting, interoperability, and graduate medical education policies for hospitals beginning October 1, 2026.
Key provisions include revised criteria for qualifying as a new residency program, a requirement that Medicare-approved residency programs comply with existing federal nondiscrimination laws, updates to the Hospital Inpatient Quality Reporting and Medicare Promoting Interoperability programs, and adoption of updated health information technology standards to support interoperability. CMS did not finalize its proposal to revise provider-based location criteria for off-campus facilities, leaving the existing regulations unchanged.
CMS also finalized a new nationwide mandatory Comprehensive Care for Joint Replacement Expanded (CJR-X) model beginning January 1, 2028.
Final rule effective October 1, 2026.