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CMS Issues FY 2026 IPPS/LTCH PPS Final Rule

On August 4, 2025, the Centers for Medicare & Medicaid Services (CMS) issued a final rule to update fiscal year (FY) 2026 Medicare payment policies and rates under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System (PPS).

To view the FY 2026 IPPS/LTCH PPS final rule, go to the following web address Federal Register :: Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year (FY) 2026 Rates; Changes to the FY 2025 IPPS Rates Due to Court Decision; Requirements for Quality Programs; and Other Policy Changes; Health Data, Technology, and Interoperability: Electronic Prescribing, Real-Time Prescription Benefit and Electronic Prior Authorization

Changes to the Hospital Inpatient Quality Reporting (IQR) Program and other quality reporting programs are included in the regulation. Details regarding proposals for various quality reporting programs can be found on the pages listed below:

  • Hospital Readmissions Reduction Program pp. 36923 - 36942
  • Hospital Value-Based Purchasing Program pp. 36943 - 36963
  • Hospital-Acquired Condition Reduction Program pp. 36963 - 36967
  • Hospital IQR Program pp. 36996 - 37027
  • PPS-Exempt Cancer Hospital Quality Reporting Program pp. 37027 37032
  • Promoting Interoperability Program pp. 37043 - 37073

For more information on the final rule, please see the FY 2026 IPPS/LTCH PPS Final Rule Fact Sheet: FY 2026 Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital Prospective Payment System (LTCH PPS) Final Rule — CMS-1833-F | CMS

Last Updated: Dec 04, 2025