FY 2027 hospital inpatient and long-term care hospital payment final rule

On July 31, 2026, CMS issued a final rule updating Medicare payment policies and rates for inpatient and long-term care hospitals under the Inpatient Prospective Payment System and the Long-Term Care Hospital Prospective Payment System for fiscal year 2027. CMS states the final rule also includes changes, clarifications, and codifications for organ acquisition and reasonable cost payment. The rule was displayed July 31, 2026 and published in the Federal Register on August 4, 2026.

Medicare's inpatient hospital payment rules for federal fiscal year 2027 are final, effective for discharges beginning October 1, 2026, along with quality program requirements and updated health information technology standards.

Hospital payment updates and quality program requirements influence hospital operating margins and capital planning, which can affect timing of equipment purchases, facility work, staffing services, and technology projects. Health IT standard updates may also create work for technology suppliers. Effects vary substantially by hospital and are considerations to evaluate, not established outcomes.