On April 10, the Centers for Medicare & Medicaid Services (CMS) released the fiscal year 2027 Inpatient Prospective Payment System (IPPS) proposed rule. Most policies described in this rule, if finalized, will go into effect October 1, 2026.
Noteworthy, this IPPS rule proposes a nationwide expansion of the Comprehensive Care for Joint Replacement (CJR) Model. The CJR Model, which was tested from April 2016-December 2024, was evaluated and found by CMS to be a sufficiently successful model to warrant nationwide expansion under the name CJR Expanded or CJR-X. The model will address hip, knee, and ankle joint replacement surgery inclusive of the first 90-days of recovery, including follow-up care. CMS has proposed an October 1, 2027 implementation date for CJR-X, which will be mandatory for hospitals nationwide. Hospitals participating in the Transforming Episode Accountability Model (TEAM) and hospitals in Maryland will be excluded from CJR-X. For more information, see the CMS CJR-X fact sheet and the model webpage.
AAPM&R is currently reviewing the proposed rule in detail and will work with Academy committees to assess opportunities for advocacy including comments to CMS by the early June deadline. For more general information about the IPPS rule, see the CMS rule fact sheet. Members with questions can contact AAPM&R at healthpolicy@aapmr.org.