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.