August 04, 2025
The Centers for Medicare and Medicaid Services (CMS) published the fiscal year 2026 Medicare Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital (LTCH) Prospective Payment System (PPS) final rule on Aug. 4. The agency also published an accompanying fact sheet.
The final rule increases operating payment rates by 2.6% for general acute care hospitals paid under the IPPS that successfully participate in the Hospital Inpatient Quality Reporting (IQR) program and are meaningful electronic health record users. CMS estimates that total Medicare spending on inpatient hospital services will increase by approximately $5 billion in fiscal year 2026 under the finalized policies.
4550 Montgomery Avenue
Suite 700, North Tower
Bethesda, MD 20814
301.907.6977
