On Friday July 31, the Centers for Medicare & Medicaid Services (CMS) released the fiscal year 2027 Hospital Inpatient Prospective Payment System (IPPS) final rule. The rule finalizes an increase in hospital inpatient payments effective October 1, 2026. Additionally, the rule includes final policies related to the Comprehensive Care for Joint Replacement Expanded (CJR-X) model, which is now scheduled to begin January 1, 2028 (previously anticipated October 1, 2027). Your Academy submitted detailed comments to CMS, raising concerns about the CJR-X expansion, in June. This rule also finalizes several changes to the Transforming Episode Accountability Model (TEAM), which took effect January 1, 2026.
Your Academy is currently analyzing the rule, and will provide further updates, particularly with respect to TEAM and CJR-X, in the coming weeks. For additional information regarding the rule, see the CMS Press Release and CMS Fact Sheet.
Members with questions can contact us at healthpolicy@aapmr.org.