Plante Moran Healthcare

FY27 IPPS rate impact analysis

The Centers for Medicare and Medicaid Services (CMS) has issued the fiscal year 2027 Medicare Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital final rule, which affects inpatient discharges beginning Oct. 1, 2026.

This rule impacts key areas of reimbursement, including:

  • Inpatient payment rates and wage index changes
  • Rural hospital reimbursement
  • Graduate Medical Education (GME) funding
  • New technology payments (NTAP)
  • Organ acquisition reimbursement
  • Bundled payment models (CJR-X)
  • Quality and interoperability programs
  • LTCH payment updates

You can find more information about the FY 2027 Hospital Inpatient Prospective Payment System final rule here

Our reimbursement team is currently analyzing the various changes within the final rule and compiling hospital-specific computations based on the final rule. We offer a complimentary hospital-specific analysis for any interested providers seeking to stay ahead of the curve. Simply input your provider numbers in the adjacent form, and we’ll send you back a reimbursement forecast.

If you have any questions related to the IPPS final rule or our analysis, please contact our industry experts below.