Medicare Program: Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year (FY) 2026 Rates;

Key Points

• 1Medicare establishes new payment rates for hospital inpatient stays and long-term care facilities for the 2026 fiscal year, replacing the current rates
• 2Hospitals are paid based on a 'prospective payment system' that sets fees upfront based on the patient's diagnosis rather than billing for each service separately
• 3Payment rates are adjusted to account for inflation, changes in medical practice, and regional differences in healthcare costs
• 4These rates directly affect which services hospitals can afford to provide and may influence patient access to hospital care in different regions
• 5The regulation applies to all acute care hospitals and long-term care hospitals that participate in Medicare, covering millions of patient stays annually

Key Dates