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 is setting new payment rates for hospitals treating short-term patients and long-term care hospitals starting October 2025
• 2Payment amounts will be adjusted based on factors like inflation, patient severity, and regional differences in healthcare costs
• 3Hospitals will receive these payment updates through the prospective payment system, meaning they get a set rate per patient diagnosis rather than reimbursement for every service provided
• 4The regulation affects thousands of acute care hospitals and long-term care facilities across the country that treat Medicare beneficiaries
• 5These rate changes influence hospital operations, staffing decisions, and potentially the quality and availability of inpatient services for seniors and disabled individuals

Key Dates