--- title: CMS FFY 2027 Inpatient PPS Final Rule description: CMS released the FFY 2027 Medicare Inpatient Prospective Payment System (IPPS) Final Rule, placing greater emphasis on Medicare Advantage, electronic quality reporting, bundled payments, and technology-driven reimbursement. image: https://public.govdataservices.com/hubfs/Close%20up%20image%20of%20businesswoman%20hands%20signing%20documents-1.jpeg --- [Skip to content](https://public.govdataservices.com/the-scoop/cms-ffy-2027-inpatient-pps-final-rule#main-content) Close - [Services](https://public.govdataservices.com/services-page) - [Medicare DSH](https://public.govdataservices.com/medicare-dsh) - [SSI Realignment](https://govdataservices-21378692.hs-sites.com/medicare-dsh#SSI) - [340B MA Underpayments](https://public.govdataservices.com/340b-medicare-advantage-underpayments) - [Medicare Bad Debt](https://public.govdataservices.com/medicare-bad-debt) - [Worksheet S-10 Uncompensated Care](https://public.govdataservices.com/s-10) - [Transfer DRG](https://public.govdataservices.com/transfer-drg) - [Medicare ID & Shadow Billing](https://public.govdataservices.com/medicare-id-shadow-billing) - [MBI ID Finder](https://public.govdataservices.com/mbi-id-finder) - [MIDaS Insurance ID](https://public.govdataservices.com/midas-insurance-id) - [Annual Wellness Visit](https://public.govdataservices.com/annual-wellness-visit) - [Eligibility & Other Services](https://public.govdataservices.com/eligibility-and-other) - [Bundle & Save](https://public.govdataservices.com/bundle-and-save) - [Demo](https://public.govdataservices.com/demo-diagnostics-review) - Resources - [Links](https://public.govdataservices.com/links) - [Blog](https://public.govdataservices.com/the-scoop) - [Contact Us](https://public.govdataservices.com/contact-us) SEARCH [Client Login](https://www.govdataservices.com/gdswebsite/DesktopDefault.aspx) [![GDSlogo\_avenir\_2](https://public.govdataservices.com/hs-fs/hubfs/GDSlogo_avenir_2.png?width=1194&height=340&name=GDSlogo_avenir_2.png)](https://public.govdataservices.com/) - [Services](https://public.govdataservices.com/services-page) - [Medicare DSH](https://public.govdataservices.com/medicare-dsh) - [SSI Realignment](https://govdataservices-21378692.hs-sites.com/medicare-dsh#SSI) - [340B MA Underpayments](https://public.govdataservices.com/340b-medicare-advantage-underpayments) - [Medicare Bad Debt](https://public.govdataservices.com/medicare-bad-debt) - [Worksheet S-10 Uncompensated Care](https://public.govdataservices.com/s-10) - [Transfer DRG](https://public.govdataservices.com/transfer-drg) - [Medicare ID & Shadow Billing](https://public.govdataservices.com/medicare-id-shadow-billing) - [MBI ID Finder](https://public.govdataservices.com/mbi-id-finder) - [MIDaS Insurance ID](https://public.govdataservices.com/midas-insurance-id) - [Annual Wellness Visit](https://public.govdataservices.com/annual-wellness-visit) - [Eligibility & Other Services](https://public.govdataservices.com/eligibility-and-other) - [Bundle & Save](https://public.govdataservices.com/bundle-and-save) - [Demo](https://public.govdataservices.com/demo-diagnostics-review) - Resources - [Links](https://public.govdataservices.com/links) - [Blog](https://public.govdataservices.com/the-scoop) - [Contact Us](https://public.govdataservices.com/contact-us) [Client Login](https://www.govdataservices.com/gdswebsite/DesktopDefault.aspx) [Chris Cusimano](https://public.govdataservices.com/the-scoop/author/chris-cusimano) Aug 5, 2026, 10:14:12 AM 1 min read # CMS FFY 2027 Inpatient PPS Final Rule [Previous](https://public.govdataservices.com/the-scoop/public-record-of-340b-ma-underpayment-settlements-continues-to-grow) [Next](https://public.govdataservices.com/the-scoop/cms-ffy-2027-rehabilitation-final-rule) CMS has released the FFY 2027 Medicare Inpatient Prospective Payment System (IPPS) Final Rule and CMS is placing greater emphasis on Medicare Advantage, electronic quality reporting, bundled payments, and technology-driven reimbursement. 1. CMS finalized a 2.3% operating payment update for FY 2027, down from 2.6% last year and down from the proposed 2.4%. 2. Medicare Advantage Beneficiaries continue to be incorporated into additional quality programs and performance measures. 3. CMS finalized a new 30-day sepsis readmission measure for the Hospital Readmissions Reduction Program. Payment implications will not begin immediately. The implementation period allows time to evaluate sepsis documentation, discharge planning, care transitions, and post-acute care. 4. $779 million is estimated in additional New Technology Add-on Payments (NTAPs). 5. Additional interoperability requirements were finalized, including the phased implementation of electronic prior authorization. While the initial implementation provides flexibility, mandatory reporting is approaching. 6. There are new quality measures while retiring several older process-oriented measures. Movement continues toward outcome measures, electronic clinical quality measures (eCQMs), and more automated reporting through the electronic health record. 7. CMS finalized the nationwide expansion of the Comprehensive Care for Joint Replacement model (CJR-X), reinforcing movement toward episode-based reimbursement. Bundled-payment models appear to remain an important component of payment reform. 8. The future of the Medicare-Dependent Hospital (MDH) program and enhanced Low-Volume Hospital adjustment continues to depend on Congressional action. The IPPS Final Rule can be found here: [IPPS Final Rule](https://www.federalregister.gov/documents/2026/08/04/2026-15833/medicare-program-hospital-inpatient-prospective-payment-systems-for-acute-care-hospitals-ipps-and) ![avatar](https://public.govdataservices.com/hs-fs/hubfs/chriscusimano.jpg?width=290&name=chriscusimano.jpg) #### [Chris Cusimano](https://public.govdataservices.com/the-scoop/author/chris-cusimano) ## RELATED ARTICLES ### [Chris Cusimano Dec 12, 2024, 1:06:06 PM 3 min read Examining Medicare DSH Qualification and 340b Status Post Medicaid Redetermination The resumption of Medicaid redeterminations is having a substantial impact on Medicare DSH and 340B hospitals. Hospitals are at ... Start Reading](https://public.govdataservices.com/the-scoop/examining-medicare-dsh-qualification-and-340b-status-post-medicaid-redetermination) ### [Chris Cusimano Apr 29, 2025, 1:05:20 PM 2 min read SCOTUS: No Provider Relief, SSI Days Must be those Receiving Payment Today, the Supreme Court of the United States (SCOTUS) affirmed the D.C. Circuit’s decision in Advocate Christ Medical Center ... Start Reading](https://public.govdataservices.com/the-scoop/scotus-ssi-days-must-be-those-receiving-payment) ### [Chris Cusimano Oct 1, 2026, 11:55:55 AM \< 1 min read 13 MS-DRGs Added to Post-Acute Care Transfer Policy An important Medicare reimbursement change takes effect today, October 1. 13 MS-DRGs have been added to the list subject to the ... 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All rights reserved - [Site Use Agreement](https://public.govdataservices.com/terms-of-use) - [Confidentiality and Privacy](https://public.govdataservices.com/privacy) ```json { "@context" : "http://schema.org", "@type" : "Organization", "knowsLanguage" : "en", "name" : "", "url" : "https://public.govdataservices.com/the-scoop/cms-ffy-2027-inpatient-pps-final-rule" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "abstract" : "CMS released the FFY 2027 Medicare Inpatient Prospective Payment System (IPPS) Final Rule, placing greater emphasis on Medicare Advantage, electronic quality reporting, bundled payments, and technology-driven reimbursement.", "author" : { "@type" : "Person", "name" : "Chris Cusimano" }, "dateModified" : "August 5, 2026 2 PM", "datePublished" : "August 5, 2026 2 PM", "headline" : "CMS FFY 2027 Inpatient PPS Final Rule", "image" : "https://21378692.fs1.hubspotusercontent-na1.net/hubfs/21378692/Close%20up%20image%20of%20businesswoman%20hands%20signing%20documents-1.jpeg", "inLanguage" : "en", "keywords" : "[Legal News]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "CMS FFY 2027 Inpatient PPS Final Rule", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "" }, "text" : "CMS has released the FFY 2027 Medicare Inpatient Prospective Payment System (IPPS) Final Rule and CMS is placing greater emphasis on Medicare Advantage, electronic quality reporting, bundled payments, and technology-driven reimbursement. CMS finalized a 2.3% operating payment update for FY 2027, down from 2.6% last year and down from the proposed 2.4%. Medicare Advantage Beneficiaries continue to be incorporated into additional quality programs and performance measures. CMS finalized a new 30-day sepsis readmission measure for the Hospital Readmissions Reduction Program. Payment implications will not begin immediately. The implementation period allows time to evaluate sepsis documentation, discharge planning, care transitions, and post-acute care. $779 million is estimated in additional New Technology Add-on Payments (NTAPs). Additional interoperability requirements were finalized, including the phased implementation of electronic prior authorization. While the initial implementation provides flexibility, mandatory reporting is approaching. There are new quality measures while retiring several older process-oriented measures. Movement continues toward outcome measures, electronic clinical quality measures (eCQMs), and more automated reporting through the electronic health record. CMS finalized the nationwide expansion of the Comprehensive Care for Joint Replacement model (CJR-X), reinforcing movement toward episode-based reimbursement. Bundled-payment models appear to remain an important component of payment reform. The future of the Medicare-Dependent Hospital (MDH) program and enhanced Low-Volume Hospital adjustment continues to depend on Congressional action. 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