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) 2027 Rates; Requirements for Quality Programs; Other Policy Changes; and Adoption of Updated Versions of Certain Health Information Technology Standards
What happened
This final rule, signed by Donald Trump and effective October 1, 2026, revises the Medicare hospital inpatient prospective payment systems (IPPS) for operating and capital-related costs of acute care hospitals. It also updates payment policies and annual rates for long-term care hospitals (LTCHs) for Fiscal Year 2027. Additionally, the rule makes changes to Medicare graduate medical education (GME) for teaching hospitals and updates requirements for certain quality programs, while also adopting updated health information technology standards.
Why it matters
This policy directly impacts how acute care and long-term care hospitals are reimbursed by Medicare, affecting their financial operations starting October 1, 2026. It also sets new requirements for quality programs, influencing hospital care standards, and updates health IT standards, which could impact hospital technology systems.
Who it affects
- ›Acute care hospitals
- ›Long-term care hospitals (LTCHs)
- ›Teaching hospitals (regarding GME)
- ›Health information technology developers
- ›Medicare patients receiving inpatient services
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