On April 10, 2026, the Centers for Medicare and Medicaid Services (CMS) released the FY 2027 Inpatient Prospective Payment System (IPPS) proposed rule. The proposed rule revises Medicare reimbursement policies and payment rates for inpatient and long-term care hospitals operating under the Inpatient Prospective Payment System (IPPS). Payments under IPPS are expected to rise by approximately 2.4%. This adjustment is based on a projected 3.2% increase in the FY 2027 hospital market basket, offset by a 0.8 percentage point reduction for productivity. Hospitals participating in IPPS must meet requirements under the Hospital Inpatient Quality Reporting (IQR) program and demonstrate meaningful use of electronic health records (EHRs) to receive the full payment update.

Items of interest in the 2027 IPPS proposed rule include:

• New Technology Add-on Payments (NTAP) for New Services and Technologies
• Proposed Changes to Specific MS-DRG Classifications
• Proposed Changes to the PPS-Exempt Cancer Hospital Quality Reporting (PCHQR) Program
• Hospital Readmission Reduction Program
• Hospital Inpatient Quality Reporting Program
• Medicare Promoting Interoperability Program

Read ASTRO’s detailed summary of the proposed rule for more information.