FY 2027 IPPS/LTCH PPS Final Rule Summary

On July 31, 2026, the Centers for Medicare & Medicaid Services (CMS) released its final rule describing federal fiscal year (FY) 2027 policies and rates for Medicare’s inpatient prospective payment system (IPPS) and the long-term care hospital (LTCH) prospective payment system. The final rule was published in the Federal Register on August 4, 2026. The payment rates and policies described in the FY 2027 IPPS final rule affect Medicare’s operating and capital payments for short-term acute care hospital inpatient services and services provided in LTCHs paid under their respective prospective payment systems. Unless otherwise specified, policies will be effective October 1, 2026.

View the HFMA FY 2027 IPPS Final Rule Executive Impact Brief (PDF file)

FY 2027 IPPS Rule Resources

• FY 2027 Final IPPS MS-DRG Rate Comparison to FY 2026 Rates (Excel file)

• FY 2027 IPPS/LTCH PPS Proposed Rule Summary
• HFMA Comments on the FY 2027 Hospital IPPS and LTCH Proposed Rule
• Voices in Healthcare Finance: Leading without authority, with Dave Sanderson (Podcast)
• FastFinance: Health system capex plans; Medicare IPPS impacts (Podcast)
• Voices in Healthcare Finance: The IPPS FY 27 proposed rule, and how the industry can better care for women (Podcast)
• Medicare Inpatient Reimbursement Fundamentals (E-learning course)