What’s happening: CHA DataSuite has released a hospital-specific analysis of the federal fiscal year (FFY) 2026 Medicare inpatient prospective payment system (IPPS) proposed rule that shows hospitals how Medicare inpatient fee-for-service payments may, based on policies set forth in the proposed rule, change from FFY 2025 to FFY 2026.
What else to know: The analysis compares the proposed year-over-year change in operating, capital, and uncompensated care (UCC) IPPS payments, and includes various breakout sections.
The breakout sections provide detailed insight into specific policies that influence IPPS payment changes, including:
- Utilizing FFY 2024 Medicare Provider and Review and FFY 2023 Hospital Cost Reporting Information System data for standard calculations
- Updates to the Medicare disproportionate share hospital (DSH) payment policies, including hospital eligibility for DSH UCC payments in FFY 2026 being based on audited FFYs 2020-22 worksheet S-10 data
- Rebasing and revising the operating market basket and capital input price index, including updating the labor-related share, using FFY 2023 Medicare cost report data
- Discontinuing the low-wage index policy and implementing a budget neutral transitional wage index value for providers who were eligible for the low-wage index policy in FFY 2024
- Expiration of both the Medicare-Dependent, Small Rural Hospital Program, and the modified low-volume hospital adjustment criteria
- Removal of the value-based purchasing health equity adjustment beginning with the FFY 2026 Value-Based Purchasing Program
This content is restricted to members.
On May 21, CHA is hosting a members-only webinar that will offer a summary of the FFY 2026 IPPS proposed rule’s implications, as well as how to share concerns on the impending changes; comments on the proposed rule are due June 10.
Email datasuitereports@calhospital.org with any questions.
